November 9, 2019 at 11:48 am #62078Nomad29345Member
Hello NACA family! I’m hoping you all, and especially the official moderator here can help me with something. This is my first forum post here, so please bear with me.
Let me preface with the fact that I live in Los Angeles, and we all know what a crazy difficult market that is to buy in even without all the complications that NACA brings to the table. My wife and I have been searching in LA for the better part of two years and have finally found a house that fits all our needs, checks all the NACA PSL/preapproval boxes, and already fell out of escrow once with a conventional loan so it doesn’t have any other interest at the moment. The reason it fell out of escrow is because the city has a lien on the home because it’s split into three 1×1 units when it’s supposed to be just one single family home and they want it properly permitted one way or another. Personally, I don’t see this as a problem because we want to reconvert and repermit the home into one house again anyway, and my understanding of the NACA renovation process is that it’s very open and done by the books. Getting things permitted properly is exactly what one of NACA’s end goals is for us as homebuyers, correct?
My problem now is this: the selling agent didn’t know anything about NACA and requested to speak with my MC and ask some questions about the program. Apparently that call went very poorly and he didn’t like that she couldn’t give him answers at all about a few specific things and only referred him to the website, which has now turned the selling agent off to NACA (and currently he’s refusing to give our offer to the seller) unless I can find some paperwork or proof that NACA has no problem helping fix code issues during a renovation.
So what I’m asking for is this:
-Community, please share with me here your experiences with NACA helping bring a home with a code issue up to par so I can show the selling agent some concrete, REAL experiences.
-Moderator, can you please answer my questions/concerns in a more official capacity so I can show the selling agent a more informed response of the process?
This is kind of a last ditch effort to have a go at this house, any and all help is greatly appreciated!! Thank you all!November 9, 2019 at 3:23 pm #62084
Try your workbook or a search on the forum. It is my understanding that naca will not actually help you get the permits and that it is completely up to you. Same for hiring contractors.
Additionally when you submit a home inspection report to the HAND department even with no rehab one of the conditions they will give you is to confirm there are no code violations. I had to provide the name number and job title of the person I spoke with to confirm this as part of my conditions with hand.November 9, 2019 at 3:55 pm #62085Nomad29345Member
Thank you for your response. I didn’t mean that I think NACA will get the permits for me. I know those and inspections are my own responsibility and that HAND will request specific inspections. Trying to simplify my question more, I want to clarify that because everything with respect to NACA/HAND is done so much by the book, proper permitting is a natural part of the renovation process with a NACA loan, correct?November 9, 2019 at 5:14 pm #62088
Absolutely. You won’t get cleared to close without them.November 9, 2019 at 9:49 pm #62092TTrumbleMember
The selling agent wouldn’t have gotten so turned off if he had called the right source. Your counselor has no direct involvement with the rehab process and isn’t expected to know what would be required or even possible in such a situation. All questions regarding renovations, permitting and so on should always go to the HAND department.
Have the selling agent call the HAND department at 210-319-2978. As for the “proof” he’s looking for, the simple fact of the matter is that HAND will never clear the property for purchase unless either the seller restores it or the funds are allocated in the loan for the restoration. You can also show him the section in your manual that notes that even a full-gut rehab can be done with HAND renovation funds, which obviously would include bringing even abandoned properties up to code. Then once his questions have been answered, he needs to give you an apology for his inappropriate behavior before he has your permission to give the offer to the sellers.
The code violations and required repairs or renovations will have to be outlined in detail by the inspector along with the estimated cost of repairs, but as long as it fits within your affordability, getting renovation funds to restore the house to its proper condition shouldn’t be an issue.
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firstname.lastname@example.orgNovember 15, 2019 at 1:24 pm #62218Liubov1989Member
We received the HAND department required repairs list yesterday and I will need to prove that there is no code violation for the property I buy. It says we need to research and document it. How do I need to do it? Is it some kind of report I need to request from the Property? I found an online portal where you can input the address and see if it has/had any violation. I can download it but it doesn’t look like an official report, is it enough?November 15, 2019 at 2:33 pm #62219
Every county/city will have their own method. My county does not provide proof. HAND simply asked me to state in an email that there are no known code violations per the phone conversation I had with the county office and list the person’s name and contact information of whom I spoke to. It was an email shorter than this post. They cleared me.November 15, 2019 at 3:00 pm #62220Liubov1989Member
Great. Thank you so much for the quick response. I guess the online report will be good then.
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