Forgotten Your Password?

Need to Register?

Question Icon

What gives? Where and what should we be looking for?

Ok this might take a while. Me and my fiancee are trying to purchase a HUD house. It has some very minor repairs that were required on our first go round with a lender (USDA loan). Being a HUD house though you CAN NOT do anything to the home until you close. So we went with another lender and a 203k loan. He comes back to say that his lender has minimum credit scores and a minimum amount ($75k) for finance. I am ready to pull my hair out with this situation. The purchase price is $55k for a home with a HUD rated as-is value of $102k Repairs needed are a few shingle on the roof which have blown off during its vacancy. A junction box for a shoddy light fixture install in the crawl space, securing the covering on a large concrete slab that has a pit for working on cars in it, and installing heat in the kitchen, bathroom, and washer/dryer room. The 2nd lender is now saying that we can get a USDA loan and finance the repairs into the loan. Something the original lender said wasn't possible. Whats going on here?? My fiancee and I both have good standing jobs. We both meet the debt to income ratios for the amount of money we are trying to finance. She has great credit and I have fair to good credit. What gives? Where and what should we be looking for? by arizonagrad558 from Tucson, Arizona. Jan 29th 2010 Reply


Steve Conklin (satorimortgage)
#4 ranked lender in Minnesota - 4 contributions

Every bank/lender/broker has diff. programs. For instance I have 5 lenders who do USDA loans, but only 1 that will go under 60k. Here is link I found for USDA loans. http://www.usdaloanapproval.com/usda_loan_guidelines_index.htmlNo matter what, you should be able to do a 203(k) loan. If its through HUD, you only have to put $100 down and can do a 203(k) on top of it. Thats a great deal!

Jan 29th 2010
1
0
Rob McAllister (Rob McAllister)
#5 ranked lender in Washington - 48 contributions

I dont see many USDA loans in Seattle, but you should be able to do an FHA 203k "Streamline" loan. The 203k Streamline allows up to 25k for minor repairs..nothing structural...which should work for what you need. Sorry you are getting mixed mesages. Hopefully you will find a good broker in your area.

Jan 29th 2010
0
0
Kristen Harris (Kristen Harris)
#3 ranked lender in Utah - 25 contributions

I can offer and escrow holdback account for minor repairs on USDA loans. I can also offer an escrow holdback account for minor repairs and the 203(K) on the HUD $100 program. (Satorimortgage's response below) is correct in stating:"Every bank/lender/broker has diff. programs" Good luck and if you need any help let me know!

Jan 31st 2010
0
0
Subscribe to our news feed.