All Forum Posts by: Jeff Brower

thanks mark but no second appraisal needed. they are sending revised GFE's over tomorrow and I should be good to go.

Well I heard back from the bank today. They will not do a fannie loan as anticipated. What they did offer was an in-house option. Not ideal but it will work. 20% down, same interest rate at 5.125% and a 12 year term. The monthly payments vs the 30 year conventional grew from $400 to $550. I had planned to cash out refinance after 12 months anyways so this is not a huge hit. ARV is around 75k and purchase is 43k. Repairs will be ~$7000 so I am still looking fine.

Thanks again everyone for the feedback and suggestions. Hoping to close next Tuesday and get to work on installing those porcelain thrones!

Thanks for the responses everyone. Tavis I don't think they will allow an fha 203k on this one. I already have fha on my personal residence as well. The loan officer did say she would check on an in-house option with her supervisor tomorrow. Only 5% more down, 20% vs 15% on the fannie loan. I will hear tomorrow.

Greg, my current contract is set to expire next Tuesday. They require extensions 5 days in advance of the expiration date so if needed I will need to get my extension filed tomorrow. Pending the in house option approval I may or may not end up cancelling this contract tomorrow.

Thanks again everyone.

The above snip was taken from the fannie faq document which was last updated may 2015. My question is how can I be required to have a 'functional bathroom' if it is not required for the utilities to be on?

Welcome Tracie. I am in lake county as well. I am also fairly new but if I can help in any way let me know! We are lucky to be physically located in such a great area for home prices vs rental rates.

Hello all,

I am currently in contract on a HUD home that was not winterized and the utilities are off. There are breaks in the copper piping in the basement so the water cannot be turned on. There are no toilets installed in the home. From the start I asked my local credit union if they would loan on the home without utilities on and they did not mention any issue. Now that the appraisal has come back noting 'no toilets' underwriting is denying the loan. They say it must have at least one 'functional bathroom'. I asked how it can be functional if the water is not on, which I had stated from the beginning.

I already have an estimate to replace the entire plumbing system in the home. Even with the utilities off my appraisal came back 'as-is' at 20% over the contract purchase price. The home exceeds the 2% rule and I don't want to miss out on this purchase. I already have $1200 invested in ernest money, inspections, and appraisals. I asked them if a video inspection of the sanitary sewer lines would suffice, they said no. I asked them if a repair escrow account would suffice, they said no.

As we know I cannot do any work on a hud home until after closing, also hud will not repair a thing. I am stuck here and if a functional bathroom is required then I will lose this house. If it is a requirement then I will be going after the bank to compensate me for funds lost as I stated that the water was off from the start over 2 months ago.

They keep stating that it is a fannie requirement to have a functional bathroom. Is this true? If so can anyone reference where this is stated? I want to say that this is an additional overlay but the loan officer keeps saying that it is required by fannie mae.

just to give you a quick idea of occupied vs non-occupied rates I was quoted ~$700/year for my SFR if occupied and it was ~$1700/year non-occupied.

I have one liability that keeps me sane. I am big into boating. We only have about 4-5 months of good weather during summer so this toy only consumes my time and money about half of the year.

congrats! I am in contract on a hud home now. If you need to extend for any reason, ensure to send the extension paperwork in at least 5 days prior to the contract ending date. Also you must have the financing all approved at least 5 days prior to closing as hud has it written in that they have 5 days to review all documentation. I am running into all of this because of appraisal delays that were beyond my control.

Alpesh if you look up two posts you will see that Barbara already explained that that was her plan. "

We also deceided we should remove the decks and replace them with cement patios because the decks were in poor condition.

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