Did you know there’s certain homes that can disqualify your mortgage pre-approval?

Not a lot of people are aware that all mortgages have guidelines as to the condition of the home that can potentially disqualify the mortgage which is why lenders will use a licensed appraiser to review the home and determine the proper market value. When you get pre-approved, make sure you discuss with your lender your preferences for your home. This will prevent you from choosing the wrong kind of property. Properties can be altered or declined based on the mortgage type.

 

Properties not approved by Fannie Mae guidelines

• Properties that cannot be accessed by a road
• Bed & Breakfast facility
• Farm, ranch, or any other agricultural type of property
• Vacant land
• Boarding homes
• Manufactured homes or mobile home

Conditions that will disqualify your Fannie Mae loan if not repaired

• leaks in the roof
• cracks in the foundation
• seepage of water
• inadequate electrical wiring or appliances
• inadequate plumbing
• cupped or curled roof shingles

Properties not approved by VA guidelines

• Homes constructed within a Special Flood area
• Homes that are within Airport Noise area.
• Homes with easements for high voltage lines, high pressure gas or liquid petroleum
• Homes located within a Coastal Barrier Resources system
• Condos that have been previously approved by the VA
• Vacant land
• Any property that is shared ownership/co-ops.

Conditions that will disqualify your VA loan if not repaired

• Evidence that home is still settling
• Unusual dampness
• Termite infestation
• Construction defects
• Decay in the structure
• Leaks in the roof
• Lead based paint (homes built before 1978)

Properties not approved by FHA guidelines

• Commercial properties
• Hotel or motel
• Tourist homes
• Boarding homes
• Sanitariums
• Sorority or fraternity houses
• Private clubs
• Co-ops

All these loans have their own sets of rules, but their main reason for having all these rules and conditions is to avoid RISK. They simply can’t risk to lose with any of these types of properties or the conditions of the properties.

If you still have questions about these rules and conditions, I highly recommend you contact your lender.