I get this question quite often from Buyers looking at foreclosure properties or fix er uppers. How bad can the condition of the property be and I can still get a loan on it?
First, are you planning on using a ‘conforming’ loan product? Most likely the answer is yes as these account for over 80% of loans originated. If so there’s a rather loose definition used. The property must be in “average” condition. Old and dated is OK, a little rot around the garage door is no problem. BUT if the place is full of mold or has an active roof leak then forget it. If you are using an FHA loan product then they actually do a basic inspection for things like a working stove and heat.
