Minimum requirements for property condition w/conventional loan
I'm under contract on a single family home that has been remodeled about 90% there... Full gut, new floors, new kitchen, bath, insulation, drywall, electrical, plumbing, new roof, new siding, etc. However, there are odds and ends that haven't been completed.
- There are a few interior doors missing.
- There is a small bedroom that was being converted to a master bath, and right now it is completely gutted down to bare studs. No electrical or plumbing or heating in that room.
- The existing bathroom tile is half torn up (I suspect they had a hose burst on the washer machine and it soaked into the subfloor and popped the tiles.)
- No finished flooring in closet (subfloor exposed)
- Handle is missing on shower valve. (I was able to turn it on using pliers)
I was going to shoot for a remodeling loan, but decided to try for a conventional loan in order to keep things simple. My question is, does anyone know if these things will be a problem for the bank, or will it be fine as long as the appraisal comes in higher than my purchase price? Assuming the appraisal backs out the cost to complete these items from the comps.
I mean obviously a bank won't loan money if half the roof is missing from a house, but I'm not so sure about these items. Does anyone have experience with this? I've asked the appraiser, and my loan officer, and I can't seem to get a straight answer. I'm going to try talking to the underwriter next to get his opinion, but I'd rather get these things addressed now if I know they will need to be done before closing. I was thinking of just throwing down some cheap flooring, and put some paneling on the walls temporarily just for the closing.
Thanks for your help!