We are looking to buy a townhouse. Its in really nice condition but there are three things I am concerned about with our FHA financing and the appraisal (in Minnesota). First there is a light fixture in the kitchen that is missing. The wiring is there but no light fixture. Second, the hand rail leading to the unfinished lower level is missing (they started finishing it but its not finished yet). Third, the bathroom vanity in the second bathroom upstairs is missing. The house was lived in so I know the water works, but for some reason they either took the vanity or were replacing it and never finished.
The house is a foreclosure so the bank doesn’t want to make changes but we want to put in an addendum to have them allow us to make changes needed to get it to pass FHA…which of these three are going to be hangups for us that we need to fix beforehand??
We were thinking about having an addendum on our offer that we’d get them fixed PRIOR to the initial appraisal with the banks permission. Should we follow through on that or let the appraiser go in as is and say what needs to be changed and then change it??
If you are getting a FHA loan as your financing you might inquire of your mortgage consultant if they now can change the financing to a FHA 203.
This will allow cash for minor repairs of the townhouse. You would need to get an estimate of the cost of repairs and submit them. From what you have indicated these are minor concerns and could. The other part is that you would have to get a professional to complete the repairs.
The other solution is that you can add to the proposed contract of purchase that these repairs be made or money be set aside to do these repairs or reduce the sale price of the townhouse to accommodate the repairs.
These items you listed are not deal breakers and easily repaired.
I hope this has been of some use to you, good luck.
"FIGHT ON"
let the appraiser see it as is. then let the lender say what they will accept
This one might break it for you, "hand rail leading to the unfinished lower level is missing ".
Sorry, the bank is not going to allow you or anyone else in to do repairs. The liability is too high, you will not be allowed to do anything until the deed is in your name.
The safety issues FHA will require be addressed.
The owner may not even accept FHA because of these issues. The bank will not agree to fix anything. If they have other offer that is not FHA they will accept the other one.