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.

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?

It all depends on your market and the competition. What does your agent say? Usually HUD won't accept bids less than 90% until a home has been on the market more than 60 days or the area is very slow.