Phoenix, AZ · Member since 2018 · 80 posts · 28 votes
I know that there have to be inspections in order for me to be able to buy a house using an FHA or VA loan, but I’m wondering how this would affect being able to get a good deal. I know that the more reno that needs to be done, the better the deal, but 1. I don’t want to have to do too much on my first deal (multi family house hack), and 2. How much Reno would the underwriting in those loans allow me to have? Is there somewhere where I can find the specifics?
Thank you for your help.
Real Estate Agent · West Chester, PA · Member since 2018 · 63 posts · 46 votes
7y
@Cosette Trantow
Loose rule of thumb is it needs to be functional. No unfinished projects. No peeling paint. No leaky pipes.
The home doesn’t need to be high end or nice but if you could live there, there’s a solid chance it would fly. If you know a decent agent or are using one for the sale they should be able to let you know.
Real Estate Agent · West Chester, PA · Member since 2018 · 63 posts · 46 votes
7y
@Cosette Trantow
No problem. There’s always the option to do a 203k loan as well. Renovation costs are rolled in to your loan. FHA will call for certain things to be done that you might not have originally planned on but is sometimes worth it. You will need a contractor who is willing to play ball as well. The contractor will essentially pay for everything up front and the lender will allow draws(payouts) as they complete jobs.
Phoenix, AZ · Member since 2018 · 80 posts · 28 votes
7y
@Kyle McKnett Is the 203k loan completely separate from the FHA so that I would need an FHA AND a 203k, or does the 203k cover both the mortgage and the reno?