Updated almost 5 years ago on . Most recent reply
Financing for a Fixer-Upper-House-Hack
Hey BP Family,
I am under contract on a home in Southaven, MS that I plan to fix up and then house hack. It is three bedrooms and two baths in 1800 square feet. It includes a two car garage attached and a single garage detached with power. I just received the inspection report back and now I am concerned the conventional loan I have been pre-approved for is not going to go through with the home in its current condition. The Inspector said all of the main systems in the home seem fine even though it has been vacant for some time. However, there is a leak in the water line about six feet away from the meter in the front yard. I will have a link to the pictures from the inspection at the bottom. The pictures are all of the greater concern or they showed features of the property well. The fee to send the appraiser out to the house is $600. I would hate to waste $600 when I have a feeling it is just to far for them to want to loan on it anyway. I am asking for two things, first do you think it will get the green light on a conventional loan. Second, if not What other options do you know of? I got a good deal on the house I just need to get to closing.
https://www.dropbox.com/sh/utd...
Thanks in Advance,
Hollis
Most Popular Reply
Go forward with the standard conventional loan.
If it does not qualify for a standard conventional because of the condition, then switch to a rehab loan such as the FHA 203k, Fannie Mae Homestyle, or the Freddie Mac CHOICERenovation.
All of these will allow you to buy the property AS-IS, even if it does not meet the minimum property standards, include the rehab cost into the loan and fix it up AFTER you own it.