My son and I are looking at the purchase of a home
y son and I are looking at the purchase of a home that is in need of fairly extensive repair. Can you give me some quick information about the process? Could he (or we) get a fast pre-approval in order to make an offer on the property? It is bank-owned. by mwbwagner399 from , California. Oct 1st 2014
Brian Allen (ballen)
#43 ranked lender in Maryland - 193 contributions
If going to be owner occupied property you can obtain a FHA 203k loan if you and your son are investors then you can typically financed 65% on a property in disrepair. Also check the terms of the sale if you can access the property to assess the damage if not you may have to use hard money to acquire. 800-485-1387 ext116 or ballen@bankofenglan1.com
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
The first suggestion is to look into an FHA 203k rehab loan. This allows you to buy it and fix it all in one loan. Pretty cool, and works for many homes. On the other hand, be very careful of the money pit. Just because you can possible get a repair loan, doesn't mean you should. ESPECIALLY on homes needing EXTENSIVE repair. Talk to a local mortgage broker in your area about FHA 203k loans. In MN, WI, and SD, visit http://joemetzler.com/203k-loans-in-mn-wi-sd.htm
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
More than likely, you wont be able to purchase that home.. Lenders selling Bank owned properties are very familiar with properties that are in bad condition, and they are familiar with the longer process required for this type of rehab financing.. if the seller (bank) is reviewing several offers, the offer that is a rehab type loan will most likely not get any consideration, since you will be up against cash offers as well as other finance offers that are not rehab type loans. I'm not saying it's impossible, but just letting you know what your up against in trying to get your offer accepted.. Talk to your real estate agent and get their input regarding getting your finance offer accepted on a bank owned property. Also, contact a local mortgage broker for mortgage approval. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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