Can I convert FHA to Conventional 2 weeks before closing?
My husband and I are buying a house, but the FHA loan is requiring a lot of inspections and work to be done on the house. We agreed to buy the house as-is so all of that is on us, not the seller. We close in less than two weeks, and we don't want to or have time to deal with all home "improvements" and inspections. Can we switch to a Conventional loan this close to closing? And will that change anything, or will they still require these inspections and "improvements?"
We signed the contract with the seller, and some releases for the bank. I don't know if there's anything locking us into an FHA loan.
- Expert8675309Lv 79 years agoFavorite Answer
You are obviously dealing with a lender that is not familiar with FHA loans.
FHA does NOT, nor EVER HAS required a home inspection.
Appraisals...are home valuation tools and are NOT inspections.
There is nothing locking you into a FHA loan and it should not take any additional extra time to underwrite, other than the fact that you may not qualify for a conventional one.
Please e-mail me...I am curious as to what the bank is requiring you to do...I never ask any identifying questions or personal information online.Source(s): former FHA/VA underwriter
- Anonymous9 years ago
Expert Realtor you are incorrect. A FHA appraisal is a lot different than a regular appraisal. Often, A FHA appraiser may require additional improvements to be done to the property before the buyer can close. In one instance a seller had to redo her steps because it didn't fit the requirement. FHA is federal and therefore, the guidelines conform with Federal statutes. If you were an underwriter you should know these things.
Discuss the matter with your lender. Review your credit score to see if you have the cushion to take a hit for repeated request for credit. If your middle fico is borderline, another credit request may complicate your ability to get a loan. Also, if the additional inspections already raised red flags you may not be able to change to conventional with the same lender. Again, discuss the matter with your loan representative.
- Anonymous9 years ago
I had the same question recently. Play it safe & read over at www.loantools.tk
- 9 years ago
What have you signed? yes you can.Source(s): me