Taunton, MA · Member since 2015 · 45 posts · 24 votes
Hi all,
I'm looking at a potential first property for a house hack. It's a Fannie Mae property, 3 family. Needs very little work but the gas has been disconnected and meters removed, and there's some minor plumbing required for the forced water heat in the basement. It's a perfect first property for me but there's no way I'd be able to get a mortgage without utilities functioning.
Anyone ever managed to work around this?
Contractor · Raymond, NH · Member since 2016 · 13 posts · 4 votes
9y
Nick Montville you might be able to submit a offer for more with the extra to go to fixing the issues or you can try for a repair escrow some banks are willing to if they give you the repair escrow for repairs as they know the money is there to fix the issues but something you would want to talk to your bank and your agent about.
Contractor · Raymond, NH · Member since 2016 · 13 posts · 4 votes
9y
Nick Montville you might be able to submit a offer for more with the extra to go to fixing the issues or you can try for a repair escrow some banks are willing to if they give you the repair escrow for repairs as they know the money is there to fix the issues but something you would want to talk to your bank and your agent about.
Investor · PA · Member since 2013 · 1k+ posts · 602 votes
9y
I usually don't bother. If you can determine the place has been lived in within the past few years then you are probably golden unless the property was vandalized while it was vacant. Getting a mortgage may be difficult unless it's a commercial mortgage or your conventional lender doesn't require an inspection.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
9y
I have negotiated to have the bank temporarily turn on utilities for inspection purposes only and most REO properties I have bought, they were already on. The list agent should be able to assist you with this.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Fannie doesn't usually utilities to be turned on, but you can ask. You can do an air pressure test for plumbing, don't know about gas. You can bring a decent sized generator for electric. You likely will need a "repair escrow" from your lender, but you'd likely have to renogiate (raise) your price to cover that. You really need to realize that Before you make your offer.
Taunton, MA · Member since 2015 · 45 posts · 24 votes
9y
Well it's a good amount below my purchase price for a 3 family, I was hoping to go for a 203k loan. It had a lockbox so I was able to go in and look around, place was in impeccable condition compared to most of the ones I've looked at. No vandalism to be seen. Just the heating repair, some minor mold, little bit of rotted exterior wood and some paint.
It's looking like it'll be a wash though, I'll probably end up waiting til Spring. Thanks everyone for the advice.