Morristown, TN · Member since 2017 · 200 posts · 22 votes
The house I need to sell has mold. I am marketing to AS IS cash only or hard money only loans -- mostly investors.
I am wondering if it were also possible to market the property to home buyers who want to live in it and fix it up themselves for a good discount, but is it possible for a lender to approve the loan, whomever it is they go to?
I am assuming government loans are a no go, so would that live only conventional lenders the only possibility, or are there even different types of lenders that don't conform to fannie mae, and whom might have less strict guidelines.
Essentially, what should I write in my ad, home buyers who only use conventional or XXX loans? How should I specify allowable lender types, etc.
FHA 203k or Fannie HomeStyle in theory, but in practice your current approach is probably your best bet. A lot of folks that want to use FHA/Fannie renovation loans are overly optimistic unicorn hunters. Then an actual GC goes out to bid it, one that's willing to work with the renovation loan process (which they generally dislike), and suddenly the package deal is very much underwater, and the loan application is denied.
Interesting, so there are no other type of conventional loans from lenders that aren't associated with banks that have there own lending guidelines and they might approve the mortgage loan.
I ask because someone who is a lender said that it is possible to get a mortgage on the house in its condition, but not from banks or VA, FHA, loans etc. I'm wondering what in the world is he talking about.