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[IL] First time home buyers looking for advise on FHA 203k loan.

Low income couple looking to purchase a home to begin building equity. We are more than willing to put in sweat equity, and minimize costs as much as possible. FHA 203k seems like the perfect fit, and we seemed to have found a listing that is an interesting option. Several questions:

  1. Can an inspection be done before applying for and getting preapproved? The seller has posted a topline engineer's report that has an upper end estimate of $53,000 in cost of repair, but i would like to get a thorough inspection and second opinion to determine a project plan with our tighter budget in mind. <br>

  2. If the total amount estimated does not equal actual cost of repairs, does the loan get consolidated for the actual amount spent, since the money is monitored through an escrow account? <br>

  3. What kind of low ball offer can we make? Given that we are taking out more money to finance repairs, i would want to low ball the price up to 15% of current list price, and ask the seller to prorate all taxes/utilities up to closing, and potential ask the seller to cover closing costs up to 50%. This house has been listed for at least 150 days, and supposedly several potential buyers backed out due to the extent of the repairs Is an offer like that reasonable, or is there a better configuration? <br>

  4. Any other tips n tricks on how to navigate FHA 203k loans?

submitted by /u/sputnikpickle
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/hhanem/il_first_time_home_buyers_looking_for_advise_on/
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