Posted on: 04th Aug, 2011 11:01 pm
Help me if you can! I'm a first time homebuyer and bought my home with an FHA loan. It is my bad luck that the seller did not disclose many problems. There was a roof leak. The toilet is equally worse. Before I purchased the property and took out the loan, FHA inspected the house before we moved in. Also, if I cannot pay the loan, they will get the property. I was of the opinion that the FHA protected first-time homebuyers from such things. Will FHA accept that it is responsible for my wrong purchase?
Hi Solee,
It is quite reasonable to assume that FHA would protect the homebuyer. You assumed that FHA's involvement as the mortgage insurer will protect you against defects in the property as FHA requires an appraisal, and that homes should meet certain "minimum property requirements". However, this is not always the case.
You should know that HUD/FHA makes no warranties regarding the value and/or the condition of the property. Thus, it becomes the responsibility of the buyers/borrowers to determine for themselves whether or not the price of the property is "reasonable" and the condition of the property is "acceptable".
Take care.
It is quite reasonable to assume that FHA would protect the homebuyer. You assumed that FHA's involvement as the mortgage insurer will protect you against defects in the property as FHA requires an appraisal, and that homes should meet certain "minimum property requirements". However, this is not always the case.
You should know that HUD/FHA makes no warranties regarding the value and/or the condition of the property. Thus, it becomes the responsibility of the buyers/borrowers to determine for themselves whether or not the price of the property is "reasonable" and the condition of the property is "acceptable".
Take care.