Seller FHA Related Questions

[Paul Parker]

Hi BiggerPocket community! I have my first offer on my first flip. The offer involves a buyer who want to use an FHA loan. Below are some questions I have regarding this offer and FHA loans...

1. The Seller agrees to buy the house "As-Is" but later in that same section it states...

"LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Buyer. If the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to Buyer."

The house is an older home(1948) but it's had a complete makeover. I know this is standard contract language but I'm wondering if I should add additional language to reflect I have don't want to pay anything more.

2. FHA Appraisals - Are these typically standard to what I should expect for a conventional loan or are they more stringient.

3. The contract states "This contract is subject to Buyer obtaining Buyer Approval. If Buyer cannot obtain Buyer Approval, Buyer may give written notice to Seller within days after the effective date of this contract and this contract will terminate and the earnest money will be refunded to Buyer. If Buyer does not terminate the contract under this provision, the contract shall no longer". To me this is too long to wait, even though the contract states closing would be 12.21.2017.

[Ken D.]

FHA needs the house in working order with no health and safety repairs - The question is, are you paying for the appraisal and did yo get your offer price? If the house is a junker broken windows, leaky roof, peeling paint and no floor covering it won't go FHA. You'r Realtor should be able to take a look and have an idea if the property is acceptable.