Bank owned home that needs a lot of work…?
We have found a bank owned home that requires a lot of work which we can do at a fairly low cost being that we have family/friends that are licensed in different trades and are willing to do the work at cost…. the problem is, my boyfriend is VA approved and the listing agent doesn’t seem to think the house is habitable enough for the VA to approve the loan. He has recommended an FHA 203k rehab loan… which requires using a HUD approved general contractor and will end up costing us a lot more for the repairs.
We have fallen in love with this house and are trying to get creative as to what kind of financing we should use to try to get this house. We would like to finance the $ to do the reapirs in with the mortgage if at all possible since we’d be getting such a good deal. We do have some $ to put down if needed, but not enough to go conventional and if we do have to come up with the 3.5% for FHA, we’d HAVE to finance money to cover the repair costs. We’re lost as to how to go about this, everyone keeps telling us that no lender will lend the mortgage and $ to do repairs but I don’t know if that is 100% accurate. Any ideas on how to go about doing this? Thanks in advance!
We have $ 10K in savings, and this house is 70K less than what we were preapproved for. We are in love with the neighborhood/layout, etc. It fits all of our “high demand” needs & is already appraising for 30K over what we’re offering with the cash in hand to do the repairs. That was all I meant by “being in love” with THIS specific property.
Part of what we love about it is that we could fix it up and redo it OUR way making it practically brand new and have so much equity in the home because of the sq footage and location. But if we use what we have in savings, we’re looking at having less $ to do the repairs from our own pocket… and of course, we’d like to have $ of our own to fall back on in case of emergency.
We have the 3.5% to put down. We’re also not buying together, it’ll be in his name. I’m a full-time student so it’s in our best interests to put it in only his name at this point. We’re also not 100% on marriage… not because of the relationship, but more because I’ve been down that road before and I’m not sure I’m ready or even want to do it again. He’s all for it. Thanks though, Lauren, we have thought about those things in making this decision.