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The house I was trying to buy could not legally be sold due to probate issues. I was able to rent it while they worked through probate. Sadly despite a raise at my job, my new loan approval numbers are not as great as a year ago. I finally found a place that meets my needs. So-so neighborhood. Not great but not awful. Quiet enough that I can work remote no issues. Yard for my dog. In budget. They have it listed with the terms conventional, FHA, and FHA203. Only I have already asked my lender and he says it would not pass FHA because it has plywood flooring. They ripped up carpet and are not replacing. Walls are patched need paint. Plumbing is all good. Electric ok. Roof ok. It is a bit of a fixer upper. Kitchen and main bath have flooring. But the rest of the house has the plywood subfloors. I just need a place to live, and even with insurances and tucking some back for repairs, what I see for rentals are much higher than the price breakdown I got from the lender. I already priced flooring and can install myself one room at a time. I know many people would look down on someone living on plywood flooring. But I am willing to put in the work one room at a time to make this a home. But my lender says even conventional plywood flooring could be an issue. Yet I see other houses that sold with the same condition. I see videos on social media of people who bought their house on limited incomes and are fixing it up.
Are plywood floors a deal breaker on a conventional loan? Honestly this whole process is so confusing to me. It is my first time trying to buy a house. I know they all say this is the worst time for working class and lower incomes to buy but I need a place to live and rentals aren't that great either. I'd rather take my meager savings and invest in a home that is mine. I work hard, have a good job. And I am willing to do the work. Paint and flooring is not too hard for me.
Is it possible to ask seller to have flooring or cheap carpeting installed so it would pass.If they could install vinyl plank flooring it would look good and be functional. They could increase cost of home to cover it.
I know years ago when we were buying a house we had to have flooring installed before they would approve us, for a loan. They didnt care what kind of flooring.
Can you qualify for a higher loan amount with the cost of finish flooring installed?
If so, and since the seller is willing to consider FHA 203, perhaps you should explore that option.
You won't get a conventional loan without finished flooring. The lender wants a loan they can re-sell, and won't be able to do so without finished flooring.
Unfortunately time is an issue and I can't afford a longer closing time either. It would put me without a place to live They will take a 203 but I know that extends closing time for the work to be done
Rehab loans are possible, but they are cumbersome to work through. And unlike what most people want, the work must all be done by licensed professionals on a tight timeline, they don't allow DYI.
Another possible avenue for nonstandard properties are local community banks or credit unions who keep their loans in house. The fact that they don't sell their loans gives them some flexibility. We have such a loan with a local savings and loan.
There won't be a holdback if the transaction cannot be funded. And, that is the issue with a conventional loan on this property.
No flooring, no funding.
If the plywood is painted with a floor paint, would that count as "flooring"? We did that to a cabin we have and it looks way better than just bare plywood. Otherwise, can the seller have cheap carpeting installed and work that into the selling price? Carpet companies can usually knock this out quickly.
If the plywood is painted with a floor paint, would that count as "flooring"? We did that to a cabin we have and it looks way better than just bare plywood. Otherwise, can the seller have cheap carpeting installed and work that into the selling price? Carpet companies can usually knock this out quickly.
Probably would not work.
I was in a foreclosure several years ago where the seller tried that. It was ugly and conventional funding was not available.
And, plywood or AdvanTech subflooring is generally far too rough to mask with paint to present a finished surface. Framing carpenters don't worry much about cosmetics.
There won't be a holdback if the transaction cannot be funded. And, that is the issue with a conventional loan on this property.
No flooring, no funding.
That's exactly what an escrow hold back is for. You get an estimate for the cost of repairs, you close and fund the loan. You take 120% of the estimated cost of repairs from the seller's proceeds and put it in escrow. The repairs need to be completed in under 30 days.
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They will take a 203 but I know that extends closing time for the work to be done 