COMMON LENDER REQUIRED REPAIRS FOR FLORIDA HOME SELLERS
Repairs. The dreaded “fun part” of homeownership for Florida residents.
No how careful you are, wear and damage are bound to happen throughout the time you’ve owned your home or property. Sometimes these issues get fixed, sometimes they don’t, and sometimes, you might not have even known it was an issue in the first place.
🔹As a seller in Florida, what does this mean to you?
It could potentially mean that the offer made to purchase your Florida house, and all the effort and paperwork, could fall through at any time, or, your buyer may not be able to get funded by their lender at all.
Understanding the differences of what NEEDS to be repaired, as compared to what you think needs to be fixed, or tidied up, can help you plan for the expenses of selling a house on the traditional market, saving you time, frustration, and hopefully netting you a buyer faster.
Fact is, one of the main reasons purchase contracts fall through is due to lender-required repairs on your home. Given the state of the economy, not everyone has spare cash (sometimes into the thousands of dollars) laying around to make repairs at the drop of a hat.
For those individuals, companies like Unload My Home can be a major lifesaver, making all-cash offers without the need for lenders, and buying properties in Florida in ‘as is’ condition. No repairs necessary.
But first, let’s take a closer look at the type of repairs lenders often require in Florida
🔹How Do You Know Ahead of Time What Repairs Might Be Lender Required?
Realtors and inspectors are generally familiar with the requirements of what is needed to get qualified for a mortgage in your particular market, and for the type of house you’re looking to sell. This is one reason why a ‘pre-inspection’ is often paid for by sellers, in an effort to ‘get ahead’ of any potential bottlenecks that might make a traditional sale a ‘no go’.
The lending company, typically the mortgage underwriter, reviews all applicable documents for the property prior to approving a loan for your buyer. This includes the appraisal, inspection, current deed, or any outstanding title work, township taxes, etc, for a contract on a property. The physical condition of the property must meet the criteria set by the lender for the loan to proceed.
One of the easiest ways, to get a straight, and up to date, code-friendly answer on any of your repair or pre-sale needs, is straight from a local inspector. You can try to find one on your own, or start by asking your realtor or mortgage lender. If need be, they can start you in the right direction.
🔹What Types of Repairs are Required Depends on the Loan Type and Buyer
Each type of loan (conventional, FHA, VA) will have slightly different requirements with regards to the types of repairs and the condition a house must be in for a lender to sign off on a loan for your buyer.
Some being stricter than others. We’ve seen banks nitpick an inch of peeling paint, shrunken caulk around windows that you need a magnifying glass to see, cracks in sidewalks, and missing nails. So its really situational.
However, regardless of lender or loan type, the main priorities of these requirements is safety and overall habitability.
🔸 FHA Specific Repairs
🔹 Broken rain gutters and improper downspouts.
🔹 Rotting outer structures, such as sheds or awnings that need demolition.
🔹 Exterior doors with improper parts or function
🔹 Exposed wiring or incorrect junction boxes
🔹 Major plumbing problems or leaks
🔹 Faulty or inoperable HVAC
🔹 Roofing problems or a life expectancy under three years
🔹 Pest or bug infestations
🔹 Mold issues
🔹 Rotting window sills, eaves, or load-bearing beams
🔹 A lack of the “typical” appliances
🔹 Bedrooms with improperly sized windows
🔹 Foundation or structural flaws or defects
🔹 Standing water or wet basement issues
🔹 Pool problems (empty, non-working pumps, infestations, etc)
🔹 Ripped or a lack of screens
🔹 Water heater failsafes such as a pressure relief valve
🔹 Insecure, missing, or broken fences
🔸 VA Loan Specific Repairs
A VA loan has a requirement list called the “Minimum Property Requirements” (or MPR’s. Although similar to the FHA’s specifics, this list focuses on safety, security, and the overall structural soundness of the property, such as:
🔹 Mechanical systems must be safe and have a reasonable future lifespan
🔹 HVAC and roofing must be considered, adequate
🔹 Crawl space(s) and/or basements must be dry and free from molds or growths
🔹Built structures must be free of termites, dry rot, and or fungus growth
🔹Complete lead-based paint remediation
🔹Conventional Loan Repairs
Generally based on the outcome of an appraisal and similar to the other two loans already discussed health and safety are the key priorities for repairs. However, conventional loans typically don’t have as strict of guidelines, as compared to their other funding options.
Keep in mind, that even though an appraiser or inspector passes the property for conventional funding, each lender may have its own specifics when it comes to its own guidelines. The lenders ultimate goal is to protect their investment into your property should you default. To do that, they want the property in peak ‘magazine quality’ before handing you money.
🔹How Much Are Lender Required Repairs Gong to Cost Me?
Its often the last thing people think about before listing a house on the Florida market, making repair costs a major and unexpected bottleneck for many would-be home sellers.
Given the current economy and heightened costs of both labor and commodities, how much it’ll cost you is an answer that has been continually on the rise. Let’s look at some example prices for lender-mandated repairs…
🔹How to avoid these costly, last-minute, lender required repairs
Deal with cash! If you want to sell your property without the headaches and financial burdens of making lender required repairs, cash buyers are often a great alternative.
Having a cash buyer, in comparison to a lending institution, puts the power back in the hands of you, and the buyer.
One of the primary benefits to this is the availability to create your own terms of the transaction that might not be easily allowable if done through a restrictive lender or broker. Such as purchasing the house in ‘as is’ condition.
Have repairs that need to be done, but you can’t afford them yourself? Set up the appropriate terms of contract, (most likely) adjust the price, and carry on with the process, instead of having the entire sale come to a halt, or get passed by.
You’re in luck! We buy houses, in as-is condition, for cash, so there are no external parties, lenders, brokers, or loans in the transaction.
No matter the condition of your home, you can sell it to motivated investors who buy houses for cash.
No hassles. No headaches. No repairs! Just cash in your pocket in as little as a few business days.