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What are the defining "Lender" standards for a habitable home?

eric - 2008-07-22 09:22:19 - Credit

Meaning what is the lender looking for to determine habitability in order to approve a home loan/mortgage? Not FHA loans but conventional lenders.

Best Answer:

A home must be in average condition or better on a standard conventional loan. There are hard money lenders that will lend on fixers.

Answers:

Well habitable means that the house is not in squalid conditions. You know livable, it should be clean and as well maintained as possible. You'll need a home inspection and if the house if deteriorating or has deteriorated too much they won't approve the loan based on the idea that you'll be spending so much money fixing the house you won't have enough to pay the mortgage and if you do default on the mortgage they won't get their money back on a busted up shack. Just get an inspection done ASAP

A home must be in average condition or better on a standard conventional loan. There are hard money lenders that will lend on fixers.