Did you know there is certain criteria a home must meet in order to qualify for an FHA or VA loan? There also various items that will make it hard for a buyer to get coverage on a home! In order to do my job as a real estate agent well, it’s important for me to know as much as I can about the different loan types AND home insurance! Specifically, what may disqualify a house. Why? Because this will help me better serve my clients as we begin the home buying process!

Home Loans

More homes qualify for conventional loans than FHA and VA loans because they are more lenient. When your real estate agent asks what type of loan you will be getting, it’s not because they’re being nosey. We need to know this information because we have to include it in our search criteria when looking for homes in the MLS. Many homes do not meet the criteria for FHA and VA loans and will only qualify for a conventional loan or a cash deal. Here are some major and minor issues to be on the lookout for when it comes to buying a home with a conventional loan:

• active leaks (piping, roof)

• mold, dampness in basement

• cracked foundation

• healthy & safety issues (i.e. exposed wires, unsafe structures like damaged decks and staircases, etc.)

• worn flooring

• damaged drywall

• chipped/peeling paint

• minor rotted wood

FHA (Federal Housing Administration) and VA (Department of Veteran Affairs) loans are a little more complicated. It’s EXTREMELY important you get pre-qualified PRIOR to looking at houses because you’ll need to know which type of loan you qualify for and which homes meet those loan-specific qualifications. Below is a list of major and minor items to look for when it comes to VA and FHA loans:

• chipped/peeling paint on exterior or interior

• broken gutters/downspouts

• deteriorating sheds and storage buildings

• utilities/appliances not on or functioning

• structural issues (i.e. foundation cracks, failing retention walls, etc.)

• proper ventilation in the attic

• uneven pavements and sidewalks

• wood rot

• empty swimming pools

• mold/dampness anywhere in the home

• missing handrails (required for 3+ steps)

• pest infestation

• lockable doors

• signs of leaking/plumbing issues

• exposed wiring

Home Insurance

When it comes to the underwriting process and getting home insurance (which is something you must have when purchasing a home), there are a few different items that could hinder a buyer from securing the insurance they need on their house? Here are a few things to take into consideration:

• unfenced pools

• vicious dog breeds or dogs with a bite history

• roof with missing or lifting shingles or severe granule loss

• peeling paint

• holes in soffit, fascia, or siding

• broken windows

• homes or clients with more than 1-2 claims in the last 5 years

• debris in the yard

• overhanging tree limbs

Any of the above items could cause delays in the closing process, so it’s important to be aware of these issues early on so they can be tackled in a timely manner. Obviously I am biased, but this is yet another reason why it’s important to work with a real estate agent when purchasing a home!

Kristin Koonce Burroughs, REALTOR®
(903)241-2608
kristinkoonce@gmail.com
BOLD Real Estate Group