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