REO’s and FHA

[Anonymous]

I am an REO asset manager for one of the major banks. One of the largest issues we have when preparing the REO for market is to decide what repairs to complete inorder for the property to be FHA financeable. The typical repairs are the obvious ( range/oven, water heater, any obvious electrical issues, plumbing etc.) FHA does not often require a fridge or dishwasher and the the requirements seem to vary from city to city and state to state. For example in AZ we were able to have a property close on an FHA with an unpermitted garage conversion, while in Riverside, CA we had the FHA kick back loans that had missing covers on the light switches. It really depends on the appraiser sometimes. FOr the most part we would rather just not deal with FHA, however in areas such as all of CA FHA loans are all we are seeing since borrowers have little or no money to put as a down payment. The 203k loans are quite difficult to get. What the 203k loan does is allow a buyer to purchase a home for 80k that needs 20k in repairs but will be worth at least 100k after the repairs are made. They let you close on the loan for 80k and disburse the 20k after closing to the FHA approved contractor to have the repairs completed. They are quite difficult to get and the list of repairs that are authorized can be found on the HUD website.

[moneymaker]

The “streamlined” version is up to $15,000 and from what I’ve read does not require sign offs on the repairs. However many people are unfamiliar with how it actually works so that is what I would like to get more info about, from someone that has actually done one. Thanks for all the above replies.

[moneymaker]

The “streamlined” version is up to $15,000 and from what I’ve read does not require sign offs on the repairs. However many people are unfamiliar with how it actually works so that is what I would like to get more info about, from someone that has actually done one. Thanks for all the above replies.

[moneymaker]

The “streamlined” version is up to $15,000 and from what I’ve read does not require sign offs on the repairs. However many people are unfamiliar with how it actually works so that is what I would like to get more info about, from someone that has actually done one. Thanks for all the above replies.

[moneymaker]

The “streamlined” version is up to $15,000 and from what I’ve read does not require sign offs on the repairs. However many people are unfamiliar with how it actually works so that is what I would like to get more info about, from someone that has actually done one. Thanks for all the above replies.

[moneymaker]

The “streamlined” version is up to $15,000 and from what I’ve read does not require sign offs on the repairs. However many people are unfamiliar with how it actually works so that is what I would like to get more info about, from someone that has actually done one. Thanks for all the above replies.

[Author]

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