Found a house but few problems and questions

[futurehomeowner?]

I know that I have another thread with all of my info but we need to decide what to do in the next 24 hours. We found a house that will work for us but there are some issues and I was wondering if anyone here has dealt with these.

 

Issue 1:

House has a shared driveway. I personally am not completely fond of this idea but it is not a deal breaker. My RE said that she has seen issues in the past with these but normally with FHA it is an issue. We are approved for conventional now so I was wondering what kind of issue this is generally.

 

Issue 2:

This house was in the middle of a rehab when the owner ran out of money which means the house is half done. There is a full working kitchen, the main bathroom is done, the 2nd bathroom has plumbing to it but no fixtures, the carpet was completely removed, the walls have been replaced but never painted, and there was a fireplace that was ripped apart but never finished.

The county website is showing an assessed value of $125,000. He had it listed for 99k but there were no offers so now he has it reduced to 75k.

 

My question is, if the appraisal and inspections come back ok; will we get final approval for the loan. My mid score is now 758 and my DTI is good so credit won't be a problem, just the house condition.

 

[liverichly]

You'll need a rehab loan to complete the repair items - FHA 203(k) or Fannie Mae HomeStyle are the two most popular. Probably why the price has been lowered, as current condition of the home won't be acceptable with normal financing... thus a smaller pool of buyers, less demand, lower prices.

 

I don't think a shared driveway is a dealbreaker, and I haven't had it ever be an issue with FHA as long as there is a recorded easement permitting both owners to use it.

[Brian B The Loan Professor]

It sounds like you need to use the 203k like mentioned above - it is a little more work and involves getting contractor quotes etc

as long as it appraises for what it sold for plus the projected work to be finished this product will work

As it is now financing may be difficult to obtain with it is a state of disrepair

 

B