The Truth About Property Condition With A Fort Lauderdale Mortgage

What Condition Can A Home Be In To Get A Fort Lauderdale Mortgage?

As a Fort Lauderdale mortgage broker, I’m often asked how a certain property condition may impact the buyer’s ability to get a Ft Lauderdale mortgage on the property.  What exactly is allowed and not acceptable these days for a Fort Lauderdale mortgage?

The rules may vary slightly for a Conventional Fannie Mae loan versus an FHA loan, but both have a common theme.  The property can’t have anything physically deficient that would be considered a ” health or safety ” issue to make a loan.  This includes items such as leaking roof, broken window, faulty wiring or electric service not up to code, missing A/C unit, structural problems, evidence of untreated termite damage, Chinese drywall, defective or inoperable plumbing, etc.  These types of issues pose risk to a lender, not only to their collateral, but opens them to potential lawsuits for liability.

The other major concern you may encounter trying to get a Fort Lauderdale mortgage, especially when purchasing a foreclosure, is missing appliances.  Recently, HUD changed their rules to allow an FHA Fort Lauderdale mortgage on a property without appliances.  Most Conventional Fannie Mae loans require appliances to be in place before making a Ft Lauderdale mortgage. Some lenders will make an exception for missing appliances if the property appraisal states that the property is being valued without the appliances.

Finally, most Ft Lauderdale mortgage lenders or banks have their own overlays (rules or guidelines) they impose over FHA and Fannie Mae regulations.  Even though FHA or Fannie Mae will purchase loans with that criteria doesn’t mean the lender will originate it.  They all worry about the risk of having to repurchase that loan.  That’s why it’s essential to work with your professional Fort Lauderdale mortgage broker, who has access to multiple lenders and knows what each bank will accept or not accept.

Harvey Collier is a Fort Lauderdale mortgage broker with multiple lenders and the experience to find a Fort Lauderdale mortgage to handle most property conditions.