Here are some things you will need to know about buying a home in "As-Is" condition, or what is known as a "Handyman Special"

What is a "Handyman Special" ?

Whenever a home is sold, the city or town performs an inspection of the property to make sure that the home is in good enough condition to live in. When the property passes this inspection, the city or town issues a Certificate of Occupancy or C/O. In most home sales, it is the Sellers responsibility to obtain the Certificate of Occupancy. When a Seller will not obtain the Certificate of Occupancy, this is when a property is sold "As-Is".

Can I get the C/O after I buy the house?

Yes, If your lender allows it. However you can not stay in the house overnight until the C/O is obtained.

Is the C/O the only certification I need?

No. The Sales Agreement will require that the property be inspected for Wood Destroying Insects such as Termites & Carpenter Ants. Also if the property has Well water, New Jersey State Law requires that the well be tested for contamination.

What will the Mortgage Company require?

It depends on the company you choose. Some lenders will always require their own inspection or appraisal of the home. If you are obtaining an FHA Mortgage, the FHA will require their own inspection.

What happens if the home fails the inspection?

If the home does not pass the lenders inspection, the inspector will provide a list of repairs that will be required before the loan can be approved.

Who will pay for the repairs?

If the home is a "Handyman" or "As-Is" the buyer is typically responsible for all repairs and certifications that are required by the City or Town and the Lender.

Can I save a lot of money buying an "As-Is" home?

Absolutely! But, when you buy a property in "As-Is" condition most lenders will require a substantially higher down payment. There are some lenders that do offer special FHA backed mortgage loans for "As-Is" purchases. For more information about obtaining a Mortgage Click Here.