What can I do if the property I want to buy does not pass inspection?
Only homes that meet FHA safety guidelines can be financed with an FHA loan. However, if the home you want to buy doesn't pass the inspection, you can apply for a 203(k) rehabilitation mortgage. 203(k) loans, which cover the home purchase and rehabilitation, provided the renovation or full reconstruction exceeds $5,000. In some cases, you may be eligible to demolish and rebuild the house if the original foundation is still in place.
If the home repairs cost less than $5,000 or the home fails to pass the inspection, you could try making a deal with the seller to have them make the repairs on the condition that you won't pull out of the transaction.
How long do I have to wait to apply for an FHA loan if I have had a foreclosure?
If you've had a foreclosure in the past and you want to buy a home, you may face some obstacles.
You usually have to wait seven years from the end of the foreclosure proceedings to apply for a conventional mortgage. However, with an FHA loan, you only need to wait three years after a foreclosure to apply.
Whether it’s your first home or your next, the experts at Quicken Loan can walk you through the process.