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Finding the house of your dreams in California which fits your needs is a challenging task. After you have finalized the decision of buying a house in a particular locality in Los Angeles, you have to follow through with a mortgage broker to deal with the important aspects.
Even if you save money in California to buy a house, you might need to consult a mortgage broker for your home financing.
Your mortgage broker will give you all the possibilities to finance the house with different types of home loans.
If you are a first-time home buyer in California or want to refinance your house, an FHA loan is the best selection for you. Compared to conventional home loans, FHA loans are smoothly and conveniently approved with a minimum down payment requirement of only 3.5%.
FHA Minimum Property Standards
The Federal Housing Authority is a government agency that offers loans to first-time homebuyers in California through FHA-approved lenders. Even if you are buying your 2nd or 3rd house, you can get a loan.
This kind of loan is ideal for people who have low credit scores and cannot save money in California to give a large down payment.
However, the house you choose to buy must qualify for the minimum property standards set by FHA. Meeting these property standards prevents a lot of problems for the lender and the borrower.
There is a minimum property standard checklist by FHA that determines whether the house you are willing to buy or sell is suitable for getting the FHA loan.
What Does the FHA Appraiser Check?
The FHA inspector ensures that your house meets most of the property standards. They check the structure, roofing, safety, durability, and location of the house.
Before getting the FHA loan approved, the FHA inspector will have a vigilant eye to ensure all the hazards are properly taken care of.
The safety, security, and soundness of the house are essential. The FHA inspector overlooks the old carpeting, minor plumbing leaks, and cracked windows.
The structure of the house should be safe and secure. It should be durable enough to keep the occupants out of danger. Severe dampness, structural leakage, damage, and decay can make the property unsafe to live in. This could be the reason that your house might fail the FHA inspection.
The roof of the house must be durable and long-lasting. It should not be damaged and damped.
If the property is in an area with excess noise, it won’t pass the FHA inspection test. Hence, you need to consider the house’s location if you are going for the FHA loan home financing.
- Heating, water, and electricity
All the rooms in the house need to have a good heating source. There should be a water heater for the hot water in winters. There should be no damaged or exposed wires in the electricity box.
Dealing with the FHA appraiser
If you are selling your house to a buyer who is opting for the FHA loan, you’d have to deal with the FHA appraiser. You don’t have to get nervous when he inspects your house.
Before closing the deal, the FHA inspector will evaluate your home according to the FHA checklist. Just give him easy access to all the areas of the house. If he finds any defects in your property, get them repaired as soon as possible to keep your home eligible for the FHA loan.
Why do People Use FHA Loans?
People use FHA loans because they are more lenient compared to conventional loans. People with loan credit scores and not enough savings in the bank account can get the FHA loan in hopes of buying a new house.
It is a good idea for you to go for the FHA loan if you cannot pay a large sum of the down payment. With an FHA loan, you can pay only a 3.5% down payment and get the loan approved. If you are considering applying for an FHA loan in California, visit https://idmortgagebroker.com/fha-loan-california/ and get a 100% free mortgage broker consultation online.
Why Are There Minimum Property Standards for FHA Loans?
The minimum property standards set by FHA are beneficial for the buyer. The main aim is to protect the lender from any financial pit.
The value of the property is not sufficient if it does not pass the FHA inspection test. If the loan gets defaulted, the lender does not have to bear the consequences of the defects and deficiencies of the house.
To mitigate the financial loss for the lender, it is crucial to ensure that the house is in good condition to be sold to a new buyer if the borrower is unable to make the loan payments.
Will My House Pass the FHA Inspection
So, your FHA loan is being processed, and you are waiting for the FHA and you are now waiting for the FHA inspector to get the house checked. He will speculate if the house meets the minimum property standards to get the loan approved.
He will look into the interior and exterior of your home and document everything to give the relevant information to the lender.
If there are any repairs needed, the lender demands them to be done. Your house will only pass the FHA inspection test when you meet the property standards to satisfy the lender.
Wondering whether your house will pass the FHA inspection test? It simply needs to be livable, safe, and secure.
- The water supply should be sufficient enough
- The sewage should have a safe disposal
- There should be adequate heat and electricity.
If the FHA inspector finds defects and deficiencies while inspecting your house, the loan can only be approved once the defects are properly corrected.
The seller has to make the necessary financial arrangements to remove the defects and deficiencies.
- It can be challenging to finance your dream home, but a mortgage broker can save you from the trouble.
Finding the right mortgage lender that understands your financial position and your home buying needs.
- Make sure you do your research and compare the mortgage rates before making up your purchase decision.
- Whether you are a seller or a buyer, your house will be reviewed by an FHA inspector if the FHA loan is involved.