What repairs do lenders require in Santa Clara County before approving a loan?

Q. What repairs do lenders require in Santa Clara County, Ca before approving a loan? We’re buying a 1940’s house in forclosure. It needs a lot of clean-up & cosmetic work. It has almost no kitchen cabinetry, a really grimey counter & sink and the stove doesn’t work. We think the roof leaks too.

There are some standards an FHA appraiser will look for but you should recognize  the appraiser has the right/ability to point out anything that he/she thinks affects value and place in that in the appraisal report for the underwriters review. “Below Average” condition is one that can catch a underwriter’s eye.

For most, there must be a working range – oven, stove. Windows and doors that are able to be secured (not broken out). Working furnace. Water tight roof (from visual inspection).

These are top of mind issues but recognize dirt and grime is not normally an issue for approval. They are mainly looking for structural issues (Broken foundation in a way that house is leaning or shows movement), safety related items (doors windows) and minimum appliance operation (like stove and furnace working so that hot plates and space heaters are not main sources).

It is best to touch base with your loan officer and agent and find out any specific requirements to your loan type. Different loans have different requirements. Homepath verses FHA verses conventional – all different.

Good luck,

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