Additionally, consider that you could do a 203K FHA construction loan to purchase a "fixer" since traditional FHA loans require the property to have no "defects" such as peeling paint, etc.

Once I get all the estimates for any major defects on the property I will present it to the seller.

In many cases, the DIY type note amongst family will have a hard time being used as collateral since from time to time, they are not conventionally underwritten, do not use conventional agreements and the file itself can have defects that impede or prevent enforcement and collection if challenged.

The latter missed defects the visually impaired would detect.Obviously the more detailed the report the better it is for an investor/buyer but what agents (esp listing) hate is using that inspection as leverage to reduce the price (& it could become part of the disclosures).

Appraisers that end up on blacklists, which do exist, are added to those for defects in reports not for borrower payment performance.

I think you only have 15 days as an owner occupant to come up with an inspection report noting major defects not disclosed by HUD to back out.

If Seller can not cure the defects on the title, I may still elect to accept title subject to the existing defects and close on the transaction.

In other words, not all DTIs over 43% are apt to be defective later on.

Rick captured a lot of what I was thinking, so I won't repeat any of that.I will point out that old houses will have hidden defects, and a $10K contingency on a $150K hard bid really isn't very much.

Expenses that may result in a betterment to your property include expenses for fixing a pre-existing defect or condition, enlarging or expanding your property, or increasing the capacity, strength, or quality of your property.Restoration.