Are you thinking of digging your heels into some Hudson Valley real estate and strongly considering using an FHA or VA loan instead of conventional? Well, let's go over some of the issues that you may face in this area that has lots of variations in types of houses.
If you're getting an FHA or VA loan, you have to keep in mind that these types of loans have restrictions that conventional loans don't regarding the house you purchase. It has to be in good condition, that doesn't mean updated, but it does mean safe. There typically cannot be many major safety, structural or hazardous issues that come up during an FHA appraisal, or your loan will not be approved.
What are some common issues with homes in our area?
Older homes not being maintained well
Well and septic issues
Lead paint
Multi family homes not having Certificates of Occupancy
Handrails
Wet basements
Missing permits for work done by the seller
The Hudson Valley is home to lots of older houses in general, and if they haven't been well kept throughout the years, there's a good chance it will have an issue when it comes to the appraisal. We also have lots of wells and septic systems opposed to municipal water and sewer systems. If the well and septic aren't at least 100 feet away from each other, it won't pass FHA/VA standards.
Does that mean it's impossible to find a home with an FHA or VA loan in the Hudson Valley? No! There's tons of real estate here, your main barrier is going to be competition with other buyers, especially if using the minimum down payment for both loan types. Minimum FHA down payment is 3.5% and VA has 0% down minimum, however a seller will still want to see a good faith deposit.
If you're looking for Hudson Valley real estate, and you're using an FHA or VA loan, you'll be alright. Just find a good Realtor to guide you through the market.
Want to check out some homes that are currently available? Here's a list!
Homes for sale in Dutchess County: Click here!
Thanks for listening,
