When a buyer applies for a mortgage, they typically think about their credit, their income and their assets relative to loan approval. In addition, the property being financed must also meet certain minimum standards.
It is helpful to understand what the minimum property standards are for each mortgage type. The links below will help you learn a little more about FHA and VA mortgage property standards.
What if a property does NOT meet minimum standards?
If a property does not meet the minimum standards for the type of mortgage being used it may impact the borrower’s ability to close on their loan. There are a few different ways that property requirement violations can be handled in order to allow a buyer to close on their new mortgage.
1. Seller can fix violations prior to closing
2. Buyer can fix violations prior to closing (must have sellers approval)
3. An escrow holdback can be used to fix the violations – click here for more
Contact The HOUSE Team today if you have any questions on mortgage related property requirements.
Team Phone: 602.435.2149
Team Email: Team@JeremyHouse.com
By Jeremy House