buying owner occupant

4 Replies

I am wanting to move my kids to a new school districts and out of the one we are in which is horrible. I saw a HUD home for sale in the district that I want. It is in bad shape but I can do most of the work. I can only come up with 70% of the asking price and that is really stretching it. It is in OO stage right now. Do I have any chance at all of getting an accepted offer on this property?

You probably won't get a HUD for 70% of its current listing price. @Mark Ferguson might be able to advise what a realistic number is.

Are you getting a loan for part of the money?  If its in very bad shape you may have a tough time getting the loan approved.  Conventional lenders generally want to see the house in "habitable condition."   

Have you looked into FHA 203k rehab loans? These are intended for this sort of situation.

Jon Holdman, Flying Phoenix LLC

I second the 203k. This sounds ideal for your situation. 3.5% minimum contribution, owner occupied, wraps rehab costs into the mortgage, decent interests rates, etc...a very cost effective way to get into a nicely rehabbed house! 

I would get preapproved for a FHA 203K (if that's the route you want to take) then figure out how much to offer.

I am not getting a loan. I have cash for 70% but don't qualify for a loan. I am self employed and still haven't bounced back from the recession yet. I am sure when it gets out of OO stage an investor will get it so I am trying to come up with all the cash I can to bid. Do you think if I can stretch it to 80% there would be a chance?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you