Real Estate Home Mortgages/delayed financing loan
A short sale house that I made an all cash offer is now approved. I want to do a Delayed Financing loan once closed so I can get the cash to return to my parents. What I heard is that this type of loan is like doing a refinancing? Will this loan require an inspection of the house? Because the seller just disclosed that there are termite in house caused by the upstairs toilet leak. Do I need to do a termite clearance so later I can use this to get the loan?
I will answer your specific question. If you are going to do a refinance and the lender directs you to do an FHA refinance then you may need an inspection and proof that it was serviced. If you do the refinance not using FHA (product), which I would highly recommend trying to do first, then only if the appraiser should notice some evidence of termite activity, old or new, then he/she would most likely note it on the appraisal and then the underwriter, would then most likely request it be done.
On a personal note, if it were me, I would have the termite inspection done first and then go into a contract for services with the company. Most inspectors offer contract services for 6-12 months. This is a smart thing to protect your investment as I've seen what termites can do and it is not all that expensive to remedy. Also, when calling to find out prices you may want to ask if there is an initial inspection fee, which usually there is, and then you ask if you chose to go into a contract for services for 6 or 12 months, would they then credit the initial inspection fee to the 6 or 12 month contract.
You may save a few dollars!
P.S. I highly suggest avoiding an FHA refinance as to avoid PMI (Private mortgage insurance# or government FHA mortgage insurance as this could be pretty expensive. It is usually required on homes that do not have 20% equity in them. Another little stupid guideline you may run into even though you may be purchasing the home way under value and having a tremendous amount of equity already in the home, is the rule that will use the purchase price or appraised value, which ever is lower, to determine the maximum LTV #loan to value) you could refinance on the home that is being refinance. This is usually put on homes that are considering refinance within 12 months of the purchase date. Some lenders will require you to wait over 12 months (12 mth seasoning) to use the appraised value unless you can demonstrate you've actually put money physically into the home prior to the refinance.
Hope this answers your specific question.
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