• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

FHA Loans- Which Properties Qualify?

September 9, 2011 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

There seems to be an ongoing stigma attached to FHA loans in the local Santa Rosa Sonoma County marketplace. The trend is that FHA loans are difficult to get because of specific property standards. Almost all the time, the property qualifies or the property has some small minor repairs that could easily be fixed prior to closing escrow.

The following text is directly from HUD which inform us which properties will qualify to For FHA financing.”Examples of minor property conditions that no longer require repair include, but are not limited to:

-Missing handrails
-cracked or damaged exit Windows or window glass
-defective paint surfaces in homes constructed post-1978
-minor plumbing leaks
-defective floor finish or covering
-damaged plaster, sheet rock or other wall and ceiling materials in homes constructed post-1978
-poor workmanship
-lack of an all weather driveway

Examples of property conditions that may present a health and safety risks to the occupants of the property include, but are not limited to:

-inadequate access/egress from bedrooms to exterior of home
-leaking or worn-out roofs
-evidence of structural problems
-defective paint surfaces in homes constructed pre-1978
-defective exterior paint surfaces in homes constructed post-1978 where the finish is otherwise unprotected

Additionally, missing appliances that are considered to be normal and customary to convey with the real estate must be included in the kitchen prior to closing the loan.

For rural properties where there is a well/individual water system there is only a test or inspection required if there is knowledge that the well water may be contaminated or if mandated by state and local jurisdiction or if there is evidence of corrosion of pipes and plumbing within areas of intensive agriculture within a quarter-mile. Well inspections are required for new construction properties.

For properties that contain septic systems a test or inspection is only required if evidence of a system failure if mandated by state and local jurisdiction or if customary to the area. Septic inspections are required for new construction properties. With regards to the roof a flat or unobservable roof inspection is not required.”

What are some general guidelines for FHA loans to determine which properties qualify?

Here are some helpful tips to make sure you can get that FHA loan done on the property you would like to make an offer on or are already in contract on.

1.Look for water damage on the ceilings, spotting etc. (if it’s blatantly visible appraiser will likely condition for repairs)

2. Is there a breaker or fuse box? (any open and exposed wires must be corrected)

3. Is there a carbon monoxide detector? (if not one will need to be installed and this usually costs out $15)

4. There must be an operational central heat source in the home. The water heater must be vented and strapped. It cannot contain any leaks. ( if it does contain leaks appraiser will note it in the appraisal for a correction)

5. How does the bathroom look? Is there signs of obvious dry rot and water damage? (if yes appraiser will condition for repairs)

6. Obvious termite infestation? ( appraiser will likely noted on the appraisal and it will need to be cured) Call me on this 707 217-4000.

7. Non-permitted bathrooms or bedrooms in the garage. (appraiser will provide the cost to cure these and will likely not give any value to the area until it is corrected)

8. How is the flooring of the property? (if the flooring is heavily beaten up as described by a licensed real estate appraiser new flooring would need to be installed-no open and exposed sub floor)

9. Is there a pool? (make sure you ask your realtor to ask listing agent if the pool pumps work-if they don’t work, a fence will have to be constructed around the pool as a safety precaution)

Most of these concerns are in lower priced Reo’s in Sonoma County. These things are usually associated with bank owned property and can be sometimes found in purchase prices between $175,000-$250,000. That’s not to say homes above $250,000 will not have these things, but is more common in those price ranges.

The reason HUD has specific property requirements is because any potential health and safety hazards pose a risk to the federal government because they insure and “back” these FHA loans. Learning whether or not an FHA Loan is doable for a property in Santa Rosa or the surrounding areas can be completed by doing a walk-through or emailing Scott Sheldon Scott.Sheldon@nafinc.com.

What to do if you are getting an FHA loan and you think your property doesn’t qualify?

First of all, you can call your lender or me Scott Sheldon 707 217-4000. Almost all realtors in this marketplace have a general idea of which properties will qualify and which won’t. If you’re doing a walk-through with your realtor at a property there will be almost always tangible signs that repairs will be needed. So what happens when something comes up?

Well, I recently had a transaction where the loan was approved, received the appraisal back and there were paint chips on the side of the house as well as open and exposed wiring. The property also did not have a carbon monoxide detector. After analyzing the appraisal, I called the listing agent and was able to successfully have these repairs paid for by the seller. We got the repairs corrected, then sent the appraiser back out to the property. The appraiser signed off on the corrected repairs. We got the property to qualify and our FHA loan funded. In some scenarios you as the buyer might have to pay for some of these repairs yourself.

We have not lost any loan transactions to date due to the property not qualifying. In every scenario we have successfully been able to get the repairs corrected to obtain financing. We have many happy clients and realtors because of this.

Talk to your lender about FHA loans and learn which properties qualify.

It’s critical to make sure the mortgage lender you are working with is an FHA expert. This marketplace changes too frequently for you to be working with a subpar loan professional. I have over six years of home mortgage loan origination experience and over three years originating FHA loans. I’m also a lot of fun and I’m local in Santa Rosa, CA. I would love an opportunity to show you which properties qualify for FHA loans today.

Related Mortgage Advice from Scott Sheldon

  • FHA Condos VS. PUD's

    Thinking about buying a condominium or unit in a planned unit development? If yes, first…

  • Understanding FHA Home Loans

    The two types of loans offered by a local mortgage lenders are conventional loans and…

  • How FHA Home Loans Work

    How do FHA Home Loans Work? FHA Home Loans are the most popular loan program…

  • Big Shoes To Fill With FHA's Back To Work Program

    Announced in 2013, the FHA Back To Work Program allows  a buyer repurchase a primary…

Filed Under: Loan Programs, Loan Qualifying

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window