Skip to content
Private Lending & Conventional Mortgage Advice

User Stats

196
Posts
83
Votes
Orion Walker
  • Investor
  • Ukiah, CA
83
Votes |
196
Posts

Offer with conventional loan declined, what else might work?

Orion Walker
  • Investor
  • Ukiah, CA
Posted Sep 8 2014, 15:14

Hi Folks,

Seller declined our conventional loan offer (225k, full asking price), seller and her agent don't think the property will pass appraisal/inspection process (needs roof/siding/decking work). They are holding out for a cash offer, but if they don't get it they said they might work with us. 

We are pretty hot on this place, so I'm just wondering about various financing options:

A 203k loan would be a good fit, but I currently have an FHA loan, so can't do another one right now. Any other loans out there like an FHA?

Our conventional loan offer was 5% down, instead of the typical 20%. Our loan guy says it doesn't matter because the same appraisal process will happen regardless of the amount down, but I'm wondering if more down would make a difference. 

I've never really explored hard money or other such routes, so I don't know if that would be an option. We don't have a lot to put down (maybe 20k tops going on current funds)

It is a good deal, but not a crazy below/off market deal, so not sure investors would want to jump in and fund. Seems like a great place to fix and hold. 

I could go max out my friends/family/crowdfunding options, but that probably wouldn't get me much beyond 20-30%...

Anyhow, let me know if I'm missing something in terms of a strategy that might appeal to this seller.

Thanks,

-Orion

Loading replies...