Almost everyone knows that FHA and VA loans have strict rules about the condition of the home you are buying. But most people do not know that in virtually every instance, the home must qualify. It’s not just the home…it’s also the association that must qualify.
For example, if a home has an active roof leak the lender will usually not approve the home for a mortgage. In fact, in most cases, the roof must have at least 3 years life left at least. This is important to know whether you are planning to buy or sell. If you are planning to sell because you need a new roof, think again. The only buyers who will be candidates will be cash buyers.
Another example is that if you are planning to buy a condo the association must have the correct amount of reserves they collect each year to please the lender and there must not be too many renters for some types of loans.
It’s mostly about matching the property to the loan type and lender. So be sure to make sure your agent understands all of this or you can find yourself spending money on things like inspections, appraisals and surveys without ever making it to the closing table. Work with an experienced and educated agent who has great lender connections that will make your home match a perfect loan match!