I am looking at a home to purchase that is being forclosed on. Before the woman went into forclosure she wanted to do some remodeling. She ripped out the kitchen, all the floor covering, one of the bathrooms. I want to buy the home from the bank and I'm looking for financing right now. I'm worried the lender will have issues with the appraisal...I don't want to finance money to fix up the house just enough to purchase the home. Does anyone know of a lender that will look the other way as far as the appraisal goes?
2006-07-17 06:18:32 · 3 answers · asked by kami m 2 in Business & Finance ➔ Renting & Real Estate
What the woman ripped out was ONLY cosmetic.....all the walls, plumbing, electricty, etc. is in working condition. The only thing you can't do is cook in the home and the floor is concrete.
2006-07-17 06:37:32 · update #1
None will 'look the other way', what you need is a lender who will lend to you based upon the "After Repair Value" (ARV) of the home. This is normally categorized in the 'Construction Loan" segment of lending, because it needs to be rehabbed before occupancy commences, and would most likely include the need to finance the monies needed to repair the property.
2006-07-17 06:27:05 · answer #1 · answered by ReggieWjr1 4 · 0⤊ 0⤋
No lender will look the other way. They will basically deduct from the appraisal what the house is worth without a kitchen and baths. If you put down a large percentage, say between 20 and 30%, the bank probably won't care.
2006-07-17 13:26:11 · answer #2 · answered by Westport 2 · 0⤊ 0⤋
if this home is not "habitable", your lender will most likely NOT do the loan. this means heat, plumbing, water, etc.
you WILL most likely have appraisal issues.
good luck with this though, there are some lenders out there who have no problems lending like that, doing a "rehab" loan.
2006-07-17 13:23:27 · answer #3 · answered by thetoothfairyiscreepy 4 · 0⤊ 0⤋