FHA Loans

Wait and see if the house is still available for sale once the construction is completed. If you're having a hard time buying now, so will anyone else not having the cash to do it outright.

With great credit and no debt, you don't want a subpar FHA loan. You'll have a higher interest rate than you would with a traditional mortgage, and paying PMI is mandatory with an FHA. The house might be great, but don't get emotional about it. There will be other houses if you don't get this one.

When we were looking I found a house that needed repair and was going to get an FHA 203k, which is a rehab loan. You can even use it to put an addition or income suite onto a house. You can look that up and see if you qualify. I have a credit union and a regular bank. I used the regular bank and my loan officer was on the ball! My credit union is very friendly, but not nearly as business savvy.
We ended up getting two days before closing and the selling bank pulled the deal completely! This was two years ago, and I honestly think they realized they could get more money for the house.
We ended up just buying a house without a loan at all,
Good luck!!

You'll have to pay to finish the addition anyway. Can't you just pay for that now? Pay off the mechanic liens so they're not an issue?

Is this the house near the railroad tracks? You have been on here several times with questions about a different house which goes back to this one with the split level floor plan.

I hope that you have found something else in a different area and one that is not "under renovation". I say this because there are hidden issues you have not seen and if you are "in love" with the house you are not thinking clearly about the structure..

Possibly as I have said before, you need to step back and really think about what you really want in the house. That is you and your husband whom seems to be away more than at home. Your kids will love where they live when you find it.

the other S.

have you found the perfect house? give it up, girlie!
the G has all sorts of loan programs. FHA loans are nice because you don't have to put as much down, but you can still qualify for a great mortgage with your great credit. you just can't go FHA because you'll need to put down more $ if you've got building in progress.
i can't tell from your post just WHY you want FHA in particular. can you put more down and qualify for a traditional mortgage? if so i'd do it.
there may be an income cap on FHA loans (it's been a decade or so since i did mortgages, so i'm rusty- and the laws have changed) but don't get too locked into that. a credit union is about the best type of financial institution to work with on your next mortgage. let your broker make suggestions.
khairete
S.

We had to look at a lot of homes with issues, because they are over priced here and we were willing to give up on the prefect physical house to be in a location we love.

The house we made an offer on was rated a C5 (apparently to the shock of the owners, because the banks will not loan on these homes). The owners needed to sell it because they we going through a divorce and neither could afford to buy out the other, so we did something unconventional. We paid to get the area repaired enough for the appraiser to come back and change the status. The owner and buyer need to be in agreement. We paid to fix someone else's house banking on us being able to close the deal. One thing good, was we got to open the walls to really see what we were buying.

I need to look up the name of the construction loans some realtors were mentioning when we were looking at true tear downs. I did not want to go that route, but it could work for you.

http://www.zillow.com/mortgage-rates/finding-the-right-lo...

An FHA loan means the loan is insured by the govt, the loan is actually from the bank. The thing with FHA is they are really nitpicky concerning the condition of the house, it basically has to be move in ready. There are loans for fixer upper houses but it seems like a lot of hassle and you can't close on the house until it's finished. You might find some more info about this on the hud website hud.gov. Is is a hud home? I'm not sure what mechanical lean means. I'm guessing that contractors have a lean on the home, maybe they weren't paid? Your best bet is to talk to a professional who deals with different types of loans. Good luck!

A credit union does not have nearly as many options to work with different types of loans. They also don't have the knowledge of all the options out there, they do one type of loan and thats it. There is a huge difference between a loan officer and a mortgage broker. I would NEVER settle on just doing business with one lender, always shop around.

I ask Bill Skutta when I have mortgage questions cell ###-###-#### work ###-###-####. He has done my loan and many family and patients.