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Deal killers

Property conditions that end an Earned Equity file, usually late and usually expensively. Check them at the showing.

Fuse box or knob-and-tube wiring

Has to be updated to a breaker panel and standard wiring before closing. Not after. This one kills deals late, so check it at the showing.

Matrix 3.17.2

Leased solar panels

Financed solar is fine if it is in the price. Leased solar is not currently acceptable. The lease must be transferred to the applicant or fully satisfied, and the payoff has to show in the purchase contract.

Matrix 3.17.5

HOA that will not approve the occupancy

The HOA has to provide bylaws and CC&Rs addressing occupancy for contract-for-deed transactions. Some HOAs read it as non-owner occupied. If the HOA does not approve, the property is ineligible.

Matrix 3.17.4

3 or more units

One and two units only. Three or more is ineligible, full stop.

Matrix 3.3.2

Age-restricted communities

Any PUD that restricts by age, race, gender, or leasing terms is out. That includes 55 and older communities.

Matrix 3.3.2

Co-ops and single-wide manufactured

Both are ineligible. Double-wide manufactured, modular, townhome, PUD, and condo with FHA approval are all fine.

Matrix 3.3.1, 3.3.2

Condition C5 or C6

May be ineligible without significant repair. Every property in C2 through C6 needs an independent inspection, and major defects get repaired before closing.

Matrix 3.12.1

Roof with less than 5 years of life

The roof inspection has to show a useful life expectancy of at least 5 years, and the roof must be in acceptable condition and good repair.

Matrix 3.13, 3.12.1

Commercial influence or a working farm

The appraiser has to certify the property has no commercial influence, is not a working farm, and has no commercial agricultural income potential.

Matrix 3.12

Waived inspections

Inspections can never be waived as part of the purchase contract. Do not write the offer that way.

Matrix 3.13.3

Florida without a 4-point and wind mitigation

Florida properties need a 4-point inspection with every unsatisfactory item fully repaired before closing, plus a wind mitigation report.

Matrix 3.13.5

Homes built before 1901

Not ineligible, but they may take additional time to obtain the insurance binder. Build that into your timeline.

Matrix 3.12.1

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