Can i buy any house with FHA loan?

Question

Can the FHA loan be used for any property? In other words, is there a website that lists all FHA approved properties available or are we expected to find our own property and then have it approved by HUD/FHA.

John Hyatt · Answer

The FHA loan can be used for almost any property. I have purchased 3 houses with FHA loans in the past 4 years...I move a lot. FHA has stricter rules on the houses you purchase because they want you to live in it. It may have changed, but I couldn't purchase a house without flooring, mold, etc. They loan up to a 4 plex and up to certain amount and the key is it must be primary residence. I purchased an REO (that was remodled - rare), Short sale, and regular transaction all with FHA loans. I am a realtor so I had access to the MLS and found properties that listed FHA eligible. If the house is liveable and doesnt need much rehab work it will more than likely qualify for FHA loan. Here is a cool website I found with FAQ (it even lists by state and city):

http://www.fha.com/faq

http://www.fha.com/fha_loan_requirements

Arissa Pedroza · Answer

Yes.  Best advice like the above post is to get with a local lender, speak with them about the FHA loan and get a pre qual letter.  Once you have that letter, you can go in a put in an offer.  Without it, you are not able to put in an offer :)

Wayne Brooks · Answer

Correct.  While FHA does have some safety and condition requirements, if they can be repaired prior to closing, that is acceptable.  Things like broken windows, rotten wood, peeling paint, exposed electrical wiring, etc.

FDirst step, find a good local mortgage broker and they can explain FHA, and get an application from you for a preapproval so you Know what you can qualify for.

Ryan McElroy · Answer

@Arissa Pedroza

So if i find a house off of craigslist and want to use the FHA loan, i just need to get the property approved by the FHA? They don't really care where it comes from, as long as its meets all requirements?

Arissa Pedroza · Answer

Not all properties are eligible for FHA financing.  FHA has a lot of requirements for safety and habitability such as flooring, smoke detectors, railings, etc.  No such website that I know of exists.  The listing agents put what financing is available based on the condition and what the selling would like to do as far as financing.  You can find out what financing is available on the MLS sheet.  Have a real estate agent assist you