FHA Loan Restrictions

[Austin Hanse]

I am looking at buying a triplex and living in one of the units. To finance this, I want to go with the FHA 3.5% down route. I know there are some restrictions on what FHA rejects as a property to finance and was curious if anyone knew the restrictions of foundation settling. The house is a little sloped on one side and is pretty noticeable on the third story when walking in the kitchen. The seller has informed us of this issue and has even shown the quote to repair the issue. I believe he bought it with this problem around 10 or so years ago and hasn't done anything to replace it since I guess it wasn't a huge deal.

My question is do you think I will still be approved for this loan with this know issue? It sounds like it has stopped settling and has been like this for awhile with no problem. Or should I look at other means of financing?

Thanks!