its in great shape, the only thing is the previous owner took the cabinets, counter tops, and appliances. Someone told me a bank will not finance a house with out a kitchen because it is considered “unlivable”. I have never heard anything like this, is this true.
9 Responses to “I am a first time home buyer, and I found a house I really like.”
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That is definitely not true. Put in an offer and good luck.
It really depends on the lender. FHA loans would require these items to be replaced prior to giving you a loan. Smaller lenders might not care.
Removing the refrigerator is normal. Removing the built-in oven, cook top, counter tops, and cabinets is most unusual and nearly unheard of. I would not purchase from this seller because he/she may have done something else. I have little trust for cheap bastards.
They took the whole kitchen. that is nuts. You will have to check with the bank.FHA would probably care but a for a regular loan the bank may or may not care. They may give you a construction loan for the cost to complete the kitchen. Call the bank where you got pre-approved and tell them the situation.
Your best bet to to ask the bank.
NOT necessarily. Depends on lender, and how much appraiser downgrades value for this perceived fault. Lets you make your dream kitchen after purchase.
DON’T overextend yourself–most common problem of first time homebuyers. Put as much down as possible so that you have some equity and reduce your interest payments. EXTRA payments of principal during first 5-10 years Make a BIG difference in amount of interest you pay. Putting the first time home buyer’s credit down as extra principal makes a huge Difference in INTEREST YOU PAY Over Life of YOUR LOAN.
It depends. You should have enough money to cover at least minimal kitchen improvements. However, as another responder said you have to be very, very careful. Someone who ripped out those things may have taken out plumbing, wiring, who knows what.
On the other hand it may have been a reno that died in mid stream and the owner may have done you a favour getting rid of that junk.
The house will have to be habitable to nearly all lenders, regardless of the loan program or your down payment amount. Habitable includes:
All glass in all window panes at time of appraisal
No boards on windows at time of appraisal
All cabinets installed in the home
All appliances installed and working - OK for fridge to be gone.
Running water
Gas and electric on by time of appraisal
Secure front and back doors that are operational.
It’s absolutely true. I live this every day in San Diego where so many disgruntled homeowners who are losing their homes trash the place before they leave. The bank has to make it habitable if they want their buyer to get a traditional loan.
And that’s to protect you and their investment in you.
It is NOT usual or unheard of in San Diego to have all appliances, cabinets and every light fixture removed. I could tell you stories that would curl your hair. I also do appraisals for bank owned homes and see the worst of the worst in mansions and ghetto homes. It’s common, not uncommon here.
Just write an aggressive offer for what it takes to get the kitchen (and baths perhaps) in working order. Make sure your agent is very experienced in foreclosed homes. He or she can educate you on what to expect, which is very far from a traditional real estate experience.
Back to the loan for a minute: Quite frankly, I am not sure you’d want a lender who didn’t want a habitable home for you.
FHA wouldn’t, but as for conventional, it depends upon the lender. after all, many foreclosures are sold this way. so the answer to your question is that it can be true, but it depends upon who you’re dealing with.
what you need to do before you go any further is get quotes of how much that it would cost to fix that kitchen. it might be more expensive than you think, and that bargain isn’t a bargain if the kitchen costs 40k to replace. if you proceed, you definately want a home inspection. there might be other things that they “liberated” from the house as well, such as copper piping, toilets, etc.