FHA loan on fixer upper duplex

[Patrick Flanagan]

Im in the process of trying to buy a duplex from a family friend. For my current house I used the VA home loan, the house had to be move in ready. This duplex I'm looking at is 2700 square foot and built in 1998 so its not a very old building. The issue is, the one unit has no carpet, no trim, small bathroom subflooring rot from a toilet leak, and the outside of the building needs new paint. This was all caused from a tenant(besides outside paint), very easy fixes. My question is can I get approved for a FHA 3.5% down home owner occupied loan if there are fixes that need to be made to the property??? I plan on living in the property with my wife and fixing the property up while we live in it.

thanks,

Pat!

[Adam Tafel]

FHA isn't a big fan of peeling paint, and the rotting subfloor could be an issue. Ideally FHA wants to know that everything in the home is functional and safe, with major structural components (foundation/roof) in good repair. Luckily you're dealing with a family friend, I'm assuming it's off-market? FHA inspection will probably come back with some work orders, at which time you can negotiate with the seller on costs. Do whatever you can pre-inspection, talk with a local agent/lender who is experienced in FHA deals and you'll know what to expect. They've been pretty easy on us lately, we get our clients properties in need of repair with FHA loans all the time.