Another issue with FHA loans (it seems to be just my loan)

Just putting out another issue we are now having. The bank (wells fargo) came back and needed more items fixed in the house and i am expecting the seller's to hand over the bill to us (which i do not blame them since it was sold as is.)

This is over termite damage, not only you need to treat the house but fix any damage noted during your inspection. So not only do you need to fix exterior rot/damage prior to sale, but interior damage. They could of taken in a step further and needed the porch removed and electrical work done so the bank says we are "lucky" but now this is delaying us again from closing and our rate is now expired on Monday since this has taken six months.

So i don't get the point of FHA loans, are we the only individuals buying a fixer upper house? I mean seriously if we could afford more then a $205K loan don't you think we would of purchased a better conditioned house? Why didn't our bank inform us upfront of these issues that could happen with the house when we told them prior to signing the mortgage paper work that the house needed updates. Then i do research and FHA has a loan that you can bundle repairs into - we were never informed of that - and this allows you to make the changes after closing and the money is put into escrow for it.

SO for those entering into contracts on houses that need a bit of help make sure you ask your bank what is going to happen when trying to close on a FHA loan on your house. Same thing with VA loans I heard as well - the expect all these things ahead of closing.

Message edited 10/30/2009 11:12:03 AM.

Re: Another issue with FHA loans (it seems to be just my loan)

We are buying a fixer upper but I think it depends on how much of a fixer upper it is. I dont see why the bank couldnt have given you a complete list from the first inspection of what they expected

So far we haven't had any issues but ours is only cosmetic fixer upper things.

Re: Another issue with FHA loans (it seems to be just my loan)

we bought a $400k house that needed no work and FHA inspector STILL found things that needed to be 'repaired'. I remember I kept saying "what happens to people that buy houses that actually NEED work??" It is pretty crazy the hoops they make you go through! Sorry your having such a tough time!

Re: Another issue with FHA loans (it seems to be just my loan)

thanks for the heads up. I'm just getting started with an FHA loan. I don't have to many problems!!!

Re: Another issue with FHA loans (it seems to be just my loan)

now they are requiring us to send anther inspection last second gotta love it!

Re: Another issue with FHA loans (it seems to be just my loan)

Re: Another issue with FHA loans (it seems to be just my loan)

Wow, I've been keeping up with your issues for a few months now, and WOW is all I can say.

Are you sure the person you are working with was familiar with FHA loans? Usually you would work with someone who specializes in FHA loans, because there are more stringent requirments and they do take more time and effort than a typical loan.

Re: Another issue with FHA loans (it seems to be just my loan)

You should also ask about the 203k loan.

Re: Another issue with FHA loans (it seems to be just my loan)

I called up a few other banks and this is what is going to happen to many FHA loans! I hate to say it but we just got it and its the beginning of what will be from now on. If your buying a fairly good/new house you shouldn't have issues and if you do the FHA loan for Fixer uppers it will still take a long time but you can bundle the costs in your mortgage and do it after closing via escrow (we couldn't do this loan) but from who i have talked to (wells fargo, hud rep, FHA individual, house inspectors) this is going to start being in affect for regular fha loans. Wells Fargo although is more strict I just found out then most other banks and that is why we had the most delays because they adopted the policies earlier then other banks.

Eeeks!