Possibly going to buy our first live-in flip through the VA. We are fully aware we must live on the property for at least 12 months before selling. Anyways, my question is:
How distressed of a property has everyone bought through the VA? Just trying to get a good idea of what to expect from the appraisers/inspectors.
You may run into some trouble with the VA... Like you stated, you have to live in the home, however the condition of the home also plays a significant role. I had an experience where a hole in the drywall, no bigger than the size of a fist, disqualified the home. They are very picky about the condition...
You should get with your lender and see if they can get you the VA inspection guidelines. Fixers normally don't work. The house typically has to be in good shape. They don't want you living in junk, they want you living in a decent place.
This might be a bit dated, but will give you an idea.
Looks like Chapter 5 is where you want to go.
So if you just need cosmetics ...then that is a way to go. If you're talking extensive work...structure, etc...maybe not so much.
Oh no, for our first rehab, we are especially steering AWAY from any major rehab. We want a home that needs some TLC. We did receive some inspection guidelines from our loan officer and they basically said to have the necessities like water, heating, electrical, AC, no lead-based paint and no broken windows. So I just wanted to make sure there was nobody out there that got a potential property denied because of unforeseen guidelines that weren't outlined in writing.
My main concern is sheetrock. Since our area was affected by Harvey, is it possible to purchase a home that's missing the bottom half of its sheetrock all around the house?
Okay, now that is what I'm worried about. See my reply to Bruce below, please. I'm not at all worried about the structural or mechanical systems of a home because I'm also avoiding that. However, the sheetrock/flooring missing or needing work done doesn't scare me to replace. I can do that no problem. But will it scare away the VA? That's my big issue.
I guess I could test the waters more as my partner and I go to look at properties. Just wanted to set my expectations further.
My thought is you can't buy a home with a VA loan that needs floors or is missing the sheetrock.
The general idea as that the home has to be "livable"....so they might be ok with dirty or stained carpet....but NOT ok with "no" carpet. Some people will say they can live in a home with missing sheetrock, but that's not VAs idea.
If you like or want these types of homes that need more work then you want to see if you can qualify for a FHA 203k rehab loan or conventional rehab loan. That gives you the purchase price, plus rehab costs in one loan. Requires higher credit score, some down payment, and qualified contractors to do the work.