Fha vs Conventional in Home Approval Process

[Christopher McIntosh]

Hey there, I'm looking to purchase my first home, and after finding quite a few that I'm interested in, my lender shot them down because the listing pages said the homes were only qualified for cash and conventional loans, not fha. Although I'm qualified for conventional as well as fha, the lender said that most real estate agents are confused in thinking that only fha homes must pass safety and health standards, while conventional loan approved homes do not, so that when they say it isn't approved for an fha, it also likely isn't approved for a conventional loan.

One house I was looking at in particular did have some issues, but it's well below my budget, 90k when I'm approved for 200k. An agent I spoke with about this house said they noticed some setttling issues, signs of water damage in the basement, paint chipping, and a back deck that might be possibly rotted. So with all those in mind, and also looking further to other properties that might have issues, I'm curious if there is a way to get any clear information about the place without a home inspection. My lender also said that if I wanted to get a loan for a place like that, I would need a 203k loan and probably have to shop around for someone else because he wouldn't be interested. I'm mostly worried about getting a place that ends up costing double the amount the home inspector estimates, so I am trying to find a way to have the owner repair the damages now, so it could be approved for an fha and just increase the cost of the home. Should I just forget about anything that doesn't qualify for an fha or should I go through the process of paying a home inspector to check properties out for me?

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