Duplex doesn't qualify for FHA Loan?

[George Gao]

Hi BP, I'm looking to purchase a duplex in Humble, TX. The listing agent advised me that it's a concrete building not up to code and therefore won't qualify for FHA financing, but it will qualify for conventional financing. I guess I don't understand why it would qualify for conventional if it doesn't qualify for FHA financing when it's not up to code. Does FHA have a more strict inspection/code requirement on the properties? I don't know what the specific issue is, haven't done the inspection yet. Just wondering if I should take the next step. Thanks in advance.

[Walmsley Gedeon]

It doesn't qualify because FHA requires the home to be in a certain habitable condition prior purchase because the point of the loan is for it to be owner occupied. A conventional loan won't have that requirement. If the home needs repair the you should apply for a FHA 203k so you can include the renovation cost in your loan. I'm not an expert but just a suggestion. George Gao