What are options if the reno needs to be done prior to the purchase, 85% gutted, loan required walls doors and floors, how could we do the repair prior to the purchase and secure the sale
Basically you could do a renovation loan. That would allow you to close and then have the repairs done post closing. More info here www.1stclassmortgageservice.com/2021/10/04/home-renovation-loan-process/
What happens if you close and it ends up being a bad contractor. They do not complete the work in the specified timeframe or the work isn’t sufficient enough to pass re-inspection or the contractor tries to price gouge the repairs after closing? How would the lender or USDA handle that if it’s not the buyers fault?
No easy answer there. I've had that happen from time to time. It's really a case by case. We've always just worked with everybody and figured out a solution. I know that's not a straight answer but that's how it goes down.
Im not licensed in California but I would think so if your lender allows it. You could also look at a fha renovation loan. We have some loan officers there if you want to reach out to me I can put you in touch with one.
The homeowners is a separate deal. Sometimes insurance companies will want repairs addressed. If that's the case the homeowners agent may need to place it with a more expensive policy that accepts the current condition until the repairs are completed the switch to a more affordable policy.
"Really helpful video. Now I know when to expect the appraisal order.
Love how blunt you are
What are options if the reno needs to be done prior to the purchase, 85% gutted, loan required walls doors and floors, how could we do the repair prior to the purchase and secure the sale
Basically you could do a renovation loan. That would allow you to close and then have the repairs done post closing. More info here www.1stclassmortgageservice.com/2021/10/04/home-renovation-loan-process/
What happens if you close and it ends up being a bad contractor. They do not complete the work in the specified timeframe or the work isn’t sufficient enough to pass re-inspection or the contractor tries to price gouge the repairs after closing? How would the lender or USDA handle that if it’s not the buyers fault?
No easy answer there. I've had that happen from time to time. It's really a case by case. We've always just worked with everybody and figured out a solution. I know that's not a straight answer but that's how it goes down.
Can I close on a repair escrow with an FHA loan in California?
Im not licensed in California but I would think so if your lender allows it. You could also look at a fha renovation loan. We have some loan officers there if you want to reach out to me I can put you in touch with one.
How does homeowner's insurance play a part in this? Is the home still insured with the repairs still required?
The homeowners is a separate deal. Sometimes insurance companies will want repairs addressed. If that's the case the homeowners agent may need to place it with a more expensive policy that accepts the current condition until the repairs are completed the switch to a more affordable policy.
Wow that house is a complete disaster
Jesus after seeing this house I live in the taj mahal