Tools

Ask a Question
Start a Discussion
Close
Create an Email Alert

Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.

This alert is for the following:

Topic:
Possible to buy beat up house with no construction/FHA ...

How often would you like the alert emailed?

Frequency:

Immediately Daily Weekly
Maximum 20 emails/day

Save

Cancel E-mail alerts
RSS
Send to del.icio.us
Send to StumbleUpon
Print page

Partner Tools

Views: 223
US
Louisiana
Nearby States
- Alabama
- Alaska
- American Samoa
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Guam
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Northern Mariana Islands
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virgin Islands
- Virginia
- Washington
- Washington D.C.
- West Virginia
- Wisconsin
- Wyoming
Don't see it?

Find:
New Orleans
Nearby Cities
Don't see it?

Find:
Neighborhood
Nearby Neighborhoods
Don't see it?

Find:

Possible to buy beat up house with no construction/FHA 203(k) loan?

Contributions: 1

Q&A

:1

I have my heart set on a house that has some issues. The siding needs work, one wall is pulling away from the structure, and there are a couple holes in the interior ceilings. No big deal.

I've been talking to lenders and brokers and they keep saying FHA 203(k) or construction/renovation loan. The concern is the bank won't lend the money, there will be large costs to cure, etc.

My question is how are people buying these houses? There are gazillions of houses that don't meet the strict standards of the FHA. This particular housed was purchased in 2006, and I know the damage didn't all happen in the past three years - how did the current occupant get a loan?

Anyone? Is it possible any more to buy an old house free and clear without someone looking over your shoulder, forcing you to hire contractors, etc.? I see this as a long term project where I do the bulk of the work myself, on my own schedule.

Thanks.

Flag content

June 02 - New Orleans

RSS

Answers (6)

Margaret Hickman, ABR, SRS, "kittenonkeys"
Contributions: 406

Margaret Hickman, ABR, SRS, "kittenonkeys"

Real Estate Agent

View my 6 listings

Contributions: 406

Q&A

:17
Disc

:3
Photos

:386

View full profile

I'm dealing with a short sale right now, and the mortgage originator in our office recommended I send my buyer to a locally owned bank with more flexibility. I did that, and she will be getting a non-conforming loan of the type investors get. The rigid FHA appraisal guidelines will not be an issue. Of course, the interest rate will be higher, but when the work is done, it can be refinanced. It will be worth more, so hopefully private mortgage insurance will not be needed.

Flag content

June 02

Bob Lowery, "Bob Lowery"
Contributions: 1664

Bob Lowery, "Bob Lowery"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 1664

Q&A

:1241
Disc

:419
Photos

:4

Zillow All-Star

Since February 2009

View full profile

Yea, with those repairs...

Conventional tends to overlook the cosmetic things, but the more serious repairs are an issue with conventional, too.

Flag content

June 02

nvchaz
Contributions: 1617

nvchaz

Contributions: 1617

Q&A

:729
Disc

:821
Photos

:67

View full profile

Is that true Bob?

I bow to your greater experience.

It seems a shame that people that want to do the work cannot find a lending facicility that will meet their needs.

Flag content

June 02

Bob Lowery, "Bob Lowery"
Contributions: 1664

Bob Lowery, "Bob Lowery"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 1664

Q&A

:1241
Disc

:419
Photos

:4

Zillow All-Star

Since February 2009

View full profile

nvchaz, I don't think this person could even buy this home with a conventional loan.

greig, you will most likely need a rehab loan based on your description. The only other way to buy this home free and clear with no one looking over your shoulder is by cash.

Flag content

June 02

nvchaz
Contributions: 1617

nvchaz

Contributions: 1617

Q&A

:729
Disc

:821
Photos

:67

View full profile

Not only that:

I'm finally in escrow on a house that fell out on the pest inspection. They wanted a visqueen vapor barrier in the crawlspace.

I said OK no problem -- I'll buy 6mil plastic and shimmy into the crawlspace and spread it. They said no, had to be a licensed contractor. So, I said OK, you pay for it then and they said yes and it will cost them $350 and a weeks delay in the closing. I could have done it in 2 hours with a $75 material cost.

Stupidity.

Flag content

June 02

nvchaz
Contributions: 1617

nvchaz

Contributions: 1617

Q&A

:729
Disc

:821
Photos

:67

View full profile

I'd tried to buy a fixer with an FHA loan and they wouldn't approve it. I could have fixed the problems with two days work.

I think you have to hire a licensed contractor and have the work done within 90 days on an FHA rehab loan. No way am I gonna do that when I can do it myself for 1/3 the cost.

The only way you can do fixers is with a conventional loan with at least 10% probably 20% down. That really p*sses me off because there are a lot of people willing to really work to improve property. But I want to do it on my own terms and not have some contractor walk in and eat up all of my equity.

I guess the FHA thinks we are all idiots who can't fix our own homes.

Flag content

June 02

Have a question? Ask it here.

Active New Orleans Real Estate Agents

Valerie Sholes

47 listings

Local Expert
Karin Smith

10 listings

136 contributions
Denise Perez

1 listings

20 contributions
Scott and Donna Palumbo

22 listings

90 contributions
Glennda Bach

20 listings

282 contributions

See more New Orleans real estate agents

Question How do I add photos and edit verbage for my listing?

Asked by Betty Poche
August 25

In Home Buying
No Answers - 64 Views

Question How do I add photos to my listing at 9 English Turn Ct.?

Latest answer by Ash_Lee
August 21

In Home Buying
1 Answer - 165 Views

Question Possible to buy beat up house with no construction/FHA 203(k) loan?

Latest answer by Margaret Hickman, ABR, SRS
June 02

In Home Buying
6 Answers - 223 Views

Question looking to buy a house that is 1800 or less in this community, 2 car garageon a lake, a screen pat

Latest answer by Craig Mirambell
February 13

In Home Buying
2 Answers - 239 Views

See More

Guide Real Estate Buyer's Closing Costs

In Buying Process
Edited August 27

Guide List of Closing Costs and Fees

In Buying Process
Edited August 27

Guide About First-Time Home Buyer Tax Credit

In Home Buying
Edited July 22

Guide You've Opened Escrow

In Buying Process
Edited July 21

Guide Picking the Best Comps

In Using Zillow to buy
Edited May 04

See more articles about Home Buying

Current Mortgage Rates

Current Last Week

30 Year Fixed

15 Year Fixed

5/1 ARM

Get this widget

<div style="width:298px;height:123px;border:1px solid #adcfff;overflow:hidden;text-align:center;font-family:verdana,arial,sans-serif;font-size:8pt;line-height:13x;background-color:#eff3ff;letter-spacing:0;text-transform:none;">
		<div style="margin: 0 6px;">
			<div style="margin-top:6px;">
				<a href="http://www.zillow.com/Mortgage_Rates/#{scid=mor-wid-lthd}" target="_blank" style="font-size:9pt;color:#36b;text-decoration:none;font-weight:bold;">
				   
						Current
				   
				         
				   Mortgage Rates</a>
			</div>   
			
			<div style="color:#555;margin:5px 0 1px;">
				<span style="padding-left:137px;">Current</span>
				<span style="padding-left:23px;">Last Week</span>
			</div>

<div style="background:#fff;height:60px;width:284px;border:1px solid #adcfff;text-align:left;">
				<div style="width:146px;float:left;">
					<div style="height:20px;background-color:#fff;">
						<div style="padding:3px 0 0 4px;"><a href="http://www.zillow.com/30_Year_Fixed_Mortgage_Rates/#{scid=mor-wid-ltt1}" target="_blank" style="text-decoration:underline;color:#36b;">30 Year Fixed</a></div>
					</div>
					<div style="height:20px;background-color:#eff7ff;">
						<div style="padding:3px 0 0 4px;"><a href="http://www.zillow.com/15_Year_Fixed_Mortgage_Rates/#{scid=mor-wid-ltt2}" target="_blank" style="text-decoration:underline;color:#36b;">15 Year Fixed</a></div>
					</div>
					<div style="height:20px;background-color:#fff;">
						<div style="padding:3px 0 0 4px;"><a href="http://www.zillow.com/5-1_ARM_Mortgage_Rates/#{scid=mor-wid-ltt3}" target="_blank" style="text-decoration:underline;color:#36b;">5/1 ARM</a></div>
					</div>
				</div>
					
				<iframe title="Current Mortgage Rates" frameborder="0" height="60" scrolling="no" width="138" src="/mortgage/MortgageRateTableWidget.htm?wide=1&region=102001">
						Your browser doesn't support frames.  Visit 
					<a href="http://www.zillow.com/mortgage/" target="_blank" style="text-decoration:none; font-size:9pt; font-weight:bold;">Zillow Mortgage Marketplace</a> 
					to see this content.
				</iframe>
				<div style="clear:both;"></div>
			</div>
			
			<div style="margin:4px 6px 0;height:15px;width:276px;">
				<a href="http://www.zillow.com/mortgage/#{scid=mor-wid-ltgr}" target="_blank" title="Zillow Mortgage Marketplace" style="display:block;margin-left:4px;height:15px;width:145px;float:left;"><img src="/static/images/zillow-mortgage-logo-small.gif" alt="Mortgages, Home Loans, and Mortgage Quotes at Zillow Mortgage Marketplace" style="border:none;"/></a>
				   
				<a href="http://www.zillow.com/webtools/widgets/MortgageRateWidget.htm#{scid=mor-wid-ltget}" target="_blank" style="font-size:7pt;color:gray;text-decoration:none;float:right;margin:1px 5px 0 0;width:80px;">Get this widget</a>
			</div>
		</div>
	</div>

Need a Mortgage?

Zillow Mortgage Marketplace

Competitive rates
Accurate, custom quotes
Thousands of lenders

... and, it's free and anonymous

Learn about Zillow Mortgage Marketplace

Zillow Poll:

Suggested by chris.roberts

Do you think your local RE market has "bottomed out" yet?

YES

Next poll
Suggest a poll

Be A Good Neighbor

Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy

Tools

Create an Email Alert

This alert is for the following:

How often would you like the alert emailed?

Partner Tools

Nearby States

Nearby Cities

Nearby Neighborhoods

Possible to buy beat up house with no construction/FHA 203(k) loan?

Contributions: 1

Main Image

Answers (6)

Real Estate Agent

Contributions: 406

Mortgage Lender

Contributions: 1664

Zillow All-Star

Contributions: 1617

Mortgage Lender

Contributions: 1664

Zillow All-Star

Contributions: 1617

Contributions: 1617

Have a question? Ask it here.

Active New Orleans Real Estate Agents

Related Questions

Question How do I add photos and edit verbage for my listing?

Question How do I add photos to my listing at 9 English Turn Ct.?

Question Possible to buy beat up house with no construction/FHA 203(k) loan?

Question looking to buy a house that is 1800 or less in this community, 2 car garageon a lake, a screen pat

Related Articles about Home Buying

Guide Real Estate Buyer's Closing Costs

Guide List of Closing Costs and Fees

Guide About First-Time Home Buyer Tax Credit

Guide You've Opened Escrow

Guide Picking the Best Comps

Need a Mortgage?

Get instant mortgage quotes

Be A Good Neighbor