All Forum Posts by: Kevin Reinell

@Tj Hines yeah definitely hoping it wouldn’t be a scenario where I would have to demolish anything, hoping honestly that something like this would just fly under the radar completely, but it’s more likely they would ask to bring it up to code, either way a risky move

@Mike McCarthy thanks for the advice, I will call building department to get an idea of how big of deal it really is.

@Jim Goebel thanks for the response. The situation is it was a garage that was converted into a bedroom without a permit and seller has disclosed this. Have you had success purchasing a property with this type of risk in the past?

What kinds of issues can you run into buying a property that was renovated without a permit? I have a situation where a garage was converted into a bedroom without a permit. Thanks!

@Jay Thomas no, not HOA communities. I think it is just a general skepticism of FHA process and it drawing out the close of the deal. So trying to find ways to make an FHA offer more attractive than conventional.

@Tom Shallcross thanks for the detailed advice. This is for multi family and my understanding is that there is no such loan at 5% conventional for a multi family property, it would have to be at least 15% down, please correct me if I am wrong. Thanks!

Hey BP,

Has anyone had success in convincing a seller to accept FHA financing even when they didn't want to? It seems like many sellers are not willing to accept FHA offers and wondering if you have any tips for negotiating with seller to make your FHA offer more attractive?

Thanks!

@Melvin List never heard of the Home Possible program, what is that? Should I inquire with my lender?

@Melvin List thanks for the suggestion. The conventional 5% down was what my lender was originally going to do, but apparently 95% conventional LTV loans are only for single family and not multi family properties. Because I am purchasing a duplex, my lender had to switch my loan to 3.5% down FHA. Is this really the case with purchasing multifamily properties? I was told that I would have to bring at least 15% down per federal guidelines for a multi family.

@Bob Norton thanks for the response, I anticipated what you described. I do plan to live there for one year while doing the rehab, so no problem there. I guess then I just need to ensure that the rehab will raise my equity to 20%+ upon completion, that way I can refi into the traditional mortgage and drop the PMI after the 1 year.