Having major problems buying this HUD home.?
The MLS listing for this home said there was a plumbing issue needing to be fixed and offered $1,100 in the contract to get this fixed after I purchase the house so I went with a traditional loan thinking this wouldn't be a problem. my home inspection came back showing the plumbing was fine but the banks appraiser wrote up that plumbing repairs are needed. problem is HUD won't let me in to do these repairs and the bank won't lend me the money until the repair is done. my loan was approved on the condition that I get this repair done before I close and requested I get a separate plumbing inspection done. they do not offer FHA loans and I have less then two weeks before closing so I don't have time to switch lenders.
Is there any way around this because HUD won't budge on this?
Bank of America.
I'm putting 20% down and have $ for any repairs. There telling me they don't offer FHA I was under the impression that this repair wouldn't be a problem and now that I got this appraisal back the bank won't budge.
Thanks for the answers and btw, this is the first HUD home my realitor has sold.
I also have enough to pay the closing costs and could even put more then 20% down if that would help me get the loan. This is a ten year loan and my credit is good so I would normaly have no trouble getting a loan.
- Anonymous7 years agoFavorite Answer
Ask your Lender if they will allow the Title Company to "hold back" in Escrow the money it will take to do the repairs. This way the Lender will know the money is there for the repairs and the work will get done because the Title Company will not release the funds until you can show the repairs are complete. You will need a final inspection to prove the work.
- loanmasteroneLv 77 years ago
Bank of America does FHA mortgage loans, as a matter of fact they have FHA underwriting approval. Bank of America is authorized to fund an FHA mortgage loan without going to FHA each time they have a request for a FHA mortgage loan.
For some reason you are not being offered a different mortgage loan program,that would allow you to have escrow hold the repair funds, followed by a re-inspection by the lender's appraiser to insure the repairs have been done in a workman like condition.
Since this is the case you have limited alternatives.
#1 Find another property to purchase
#2 Switch to another lender so as to be approved for a different mortgage loan program
I hope this has been of some benefit to you, good luck.
- realtor.sailorLv 77 years ago
Apparently the home is not in move in condition you need a rennovation type loan. This will give you the money to buy the home and make the repairs. Since your loan approval is condition upon the seller making the repairs and the seller won't, then your approval is void. I would suggest that you amend the contract to reflect you are going for a rennovation type loan. If the seller won't agree then you should be able to cancel and get your deposit back.
realtor.sailorSource(s): I'm a Realtor
- Go with the flowLv 77 years ago
If this is bank of amercica:
You can do a conventional loan. Not too late to switch.
They DO offer FHA, the home does not qualify for it.
Not sure why Bank of america is telling you that you can't do a conventional loan.
Do you have not only 20%, but closing costs and some taxes and insurance?