What FHA Appraisers Look For | Episode 068 AskJasonGelios Real Estate Show

[@DavidB-j3p]

my house passed with a horribe roof which i had to repair 3 months after i purchased. Appraisal does not equal inspection!

[@ItsAllAboutTheRealEstate]

Very true A home inspection is key. Thx for watching!

[@onethousandtwonortheast8848]

I need some advice. My mothers home has multiple locations on it where the water is coming from a leaking roof. I need to apply for a loan on her behalf to fix the roof completely. But how can you qualify for a loan when the bank will send an adjuster in to appraise the value of the home before they give you the loan? Isn’t water damage a big problem and therefore they won’t write the loan? What kind of loans out there will allow the homeowner to receive money to fix the problem?

[@ItsAllAboutTheRealEstate]

Great question! I would say this falls under home owners insurance. Otherwise you could do an equity loan. Thx for watching!

[@onethousandtwonortheast8848]

@@ItsAllAboutTheRealEstate Her home is free-and-clear so there is no home owner’s insurance in place and when she still had a mortgage, she couldn’t get a homeowners insurance policy. It’s very difficult to get them. The bank forced her though to have homeowners insurance, but it was called CPI which stands for collateral protection insurance. As you know, that insurance protects the bank not the homeowner. And, it isn’t cheap! So I tried to make a claim because the roof problem probably started when she was still paying the mortgage. No luck, CPI doesn’t cover those issues, according to the insurance company. Being that this is the case, you’re saying an equity loan is the way to go? Can you be more specific, a HELOC or something else? Thank you so much for taking the time to answer this esoteric situation question.

[@ItsAllAboutTheRealEstate]

@@onethousandtwonortheast8848 sounds like a headache going through that! Sorry to hear that. I always recommend keeping insurance on a home even if it’s free and clear. You probably could explore a heloc to replace the roof. Usually they would just run an electronic value check or AVM (Automated Value Metric) to determine value. They don’t confirm what the money would be used for. Hope this helps 😃

[@onethousandtwonortheast8848]

@@ItsAllAboutTheRealEstate you just helped me more than you could ever know. Thank you so much!

[@onethousandtwonortheast8848]

@@ItsAllAboutTheRealEstate i’m sorry, I forgot to mention one more thing that might be a dealbreaker. She had a new air-conditioning unit installed, I found out, about 10 years ago. After the work was done, they never gave her a bill. Despite her attempts to get them to send her one, they never did, and subsequently went out of business. Well, no surprise, they sold the debt to a law firm, and now she has a lien on the property. Do you think this lien will preclude her from being able to get a home equity line of credit or other type of loan?

[@Offical_BullyCo]

Who is responsible for making repairs after an appraiser/ inspector comes out? Buyer or seller?

[@ItsAllAboutTheRealEstate]

Depends on who agrees to take care of the repairs and what they are. Typically a seller is asked to fix repairs. Great question!

[@06jsil]

I'm getting an new built mobile home built that's going for 220k. Do you think it will go over or under

[@ItsAllAboutTheRealEstate]

Sorry for the late reply. Homes almost always appreciate. Although budgets to build anything almost always go over too.

[@Detached_AZ]

You should nix the music in the background. It's distracting

[@ItsAllAboutTheRealEstate]

How so?

[@Detached_AZ]

@@ItsAllAboutTheRealEstate Because it's distracting to have to listen over the music to what you're actually saying. This is constructive, not otherwise

[@ItsAllAboutTheRealEstate]

@Detached_AZ gotcha This is an older episode. We have fixed the music since then