Mortgage home without working heat or a/c?

[fan-of-fans]

Does anyone have experience getting mortgage on home without functional central heat/air? I saw a foreclosure that came up. I've had my eye on it for months, it's been on the market, but hasn't gone under contract. They just lowered the price again. I've drove by there a few weeks ago, but haven't viewed it though. Not sure why it hasn't sold but I can see the a/c compressor unit is missing, so I don't know if the heater is missing too. But from what I had heard you can't get a mortgage on a house without working heat system.

I don't know what about it I like exactly, but I really like the house, even though it doesn't have high ceilings like I'd like. Maybe just because it's the only thing on the market now I could afford anymore. LOL But it does look like a decent place otherwise, good neighborhood too and 1/2 acre, two car garage. I think it might even have a central vac and intercom system from the pictures. Older home, built in the 70s, looks like it was remodeled mid 2000s maybe. New roof too.

 

[luxflairguy]

HOw about some pics or the listing info?

 

[dermacie]

I know from my years of working for a bank, it is very difficult to get a mortgage on a home that is not functional. If the home is under construction they will not approve the loan. I do also know that many banks offer energy efficiency loans for siding and heating equipment. Of course one would have to own the home to get that kind of loan.

My advice would be to get a pre-approval for a mortgage first and then worry about the mechanicals of the home. It is very difficult to get a foreclosure home without cash or a letter in hand.

Good luck!

 

[louvac]

You can get a mortgage

Check out the house in person with a KNOWLEDGEABLE contractor to get an estimate on what it would cost to replace/repair the heating/cooling system. Then make an offer based on what YOU believe the house is worth or what you are willing to pay for it in that condition. It also would make sense to get your own appraiser too! This ends up being the TRUE REAL VALUE of the house---not what the Realtor says it's worth of the seller believes it's worth or what the "comps" say it's worth. Also, NEVER PAY MORE than what it's worth. This is what happened in 2008. You don't want that.

You should also get the mortgage FIRST, and then tell the lender which house you chose, second! This puts you ahead of the pack! The seller will know you mean BUSINESS and that your are a sure buyer! Then, ask the lender for X-amount of extra money to make the corrections. I forgot what this is called. Maybe a contract mortgage? The lender gives you the money to complete the project then marries the loan to your actual mortgage so that you have one final mortgage. It's not complicated and it's worth checking out.

 

[qsd-dan]

A scrapper probably recycled the HVAC unit after the house was evacuated. God forbid they made their way inside the home.

 

Be sure to look over the house carefully, there's probably something wrong with it if has has been up for sale long enough to initiate a price reduction in this hot market. Pass on it if has any mold, too much work and money to properly rectify that so it doesn't return. If it looks fine, have EVERYTHING inspected.... electrical, HVAC, plumbing, well if applicable, same if goes for a septic tank. Factor in other stuff you'll eventually want like a whole house generator, BG transfer switch, and propane tank if it doesn't already come with that. Don't let a realtor push you into buying the house without inspections from foundation to roof peak.  Don't fall for bullshit fear tactic games realtors play, like claiming other offers are on the table so pull the trigger ASAP. Most people in sales like to prey on the young.

 

[petek]

After having the house inspected and/or appraised I don't know why a bank wouldn't approve a mortage conditional on the heating and a/c being installed.The cost of which could be rolled into your mortage.

 

[chachp]

Reply #5

 

<span style="font-family: helvetica;">I agree.  I recall a friend of mine bought a foreclosure a few years ago.  Seems they were able to get the mortgage, but the closing wouldn't be scheduled until the work mentioned in the inspection had been completed and proof provided.  I don't recall if they had to have it inspected again for proof or if they just provided the paperwork that it was done.  Seems there were a few other things like the electric and plumbing that had to be working.</span>

 

<span style="font-family: helvetica;">The deal breakers for me would be Mold, Foundation Issues or Termites.  Just too much work and too much money to repair in my opinion.</span>

 

<span style="font-family: helvetica;">Be advised, a purchase like this could easily become a money pit.  If your motivation for this purchase is a lower price you may find yourself paying just as much as you would otherwise (and maybe more), but in bits and pieces after the fact.  Does your budget support that vs. buying a house that is a little more and spread across a 30 year mortgage?  Just some food for thought and not intended to discourage you from the purchase.</span>

 

[vacerator]

Depends

on the cost of repairs, the dwelling price, Location-location-location, market values, equity/investement ratio, appraisal, etc. Always over estimate improvement costs. Something always comes up.
Myself, I'd never buy a house without an inspection pending a mortgage. Florida has, well more "special problems". Insect infestations, sandy soil foundation issues, sink hole areas, more mold, etc.

 

[louvac]

Totally guys!

Great minds think alike! I love it!

Yes and the most important aspect in my opinion is the foundation-hands down! Without a sound one, nothing above it matters! Chacchp is right! I'd rather pay a little more over budget spread out across a 30 year mortgage and not have to deal with AH's TRYING to rectify the problem. You know how it goes these days particularly--everybody is an expert! Yea, right!

 

[awooff]

Local lender

Realtor here - talk to your local lender. An fha loan is more strict as compared to a conventional loan (20 percent down). Missing hvac should not be an issue on a conventional loan.

Always speak to a lender about pre-qualification on a loan before calling a Realtor! Unless paying cash.