Can I get conventional lending...

Private Lending & Conventional Mortgage Advice
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Can I get conventional lending...

Sam Booth
Member since 2022 · 241 posts · 62 votes

Can I get a conventional loan on a foreclosure home without an oven and oven hood? 

seller won't do any repairs. If conventional is not an option,any other types of loans that might work?

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  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    2y

    Although we do investor loans nationally, we only do consumer loans in FL. We've got a conventional program that will allow you to renovate the property after purchase. What State are you in?

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  • Sam Booth
    OP
    Member since 2022 · 241 posts · 62 votes
    2y
    Quote from @Doug Smith:

    Although we do investor loans nationally, we only do consumer loans in FL. We've got a conventional program that will allow you to renovate the property after purchase. What State are you in?

    The property is in alabama and I am in California. Current lender is Guild but sounds like they need the oven installed
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  • Nick Conley
    Lender · Dallas, TX · Member since 2023 · 71 posts · 19 votes
    2y

    Sam,

    You can do an investment property purchase with an escrow holdback or a renovation loan such as a homestyle loan from Fannie Mae. Those usually come with a higher rate so I would ask Guild about an escrow holdback. Feel free to PM me, this is typically something a lender can accomadate.

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  • Sam Booth
    OP
    Member since 2022 · 241 posts · 62 votes
    2y
    Quote from @Nick Conley:

    Sam,

    You can do an investment property purchase with an escrow holdback or a renovation loan such as a homestyle loan from Fannie Mae. Those usually come with a higher rate so I would ask Guild about an escrow holdback. Feel free to PM me, this is typically something a lender can accomadate.

    Excellent! I just spoke to my LO and it sounds like this might work! Thank you for your advice
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Sam Booth:

    Can I get a conventional loan on a foreclosure home without an oven and oven hood? 

    seller won't do any repairs. If conventional is not an option,any other types of loans that might work?


     Hey Sam, 

    Do you need to close on this fast? Is this property going to be an investment or your primary?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    Is this for an investment property ? 

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  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    2y

    hi Sam, there are rehab loans in the conventional loan as well. They can lend you up to 95% LTV or 96.5% LTV for FHA for the land + rehab loan all in. The lender will need to send an appraisal out to see what the estimated ARV (after repair value), in order to make sure that the ARV is above the cost acquired for that house + land.

    @Carlos Valencia @Albert Bui

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  • Sam Booth
    OP
    Member since 2022 · 241 posts · 62 votes
    2y
    Quote from @Jacob Sherman:

    Is this for an investment property ? 


     Investment 

    0Reply
  • Sam Booth
    OP
    Member since 2022 · 241 posts · 62 votes
    2y
    Quote from @Matthew Kwan:

    hi Sam, there are rehab loans in the conventional loan as well. They can lend you up to 95% LTV or 96.5% LTV for FHA for the land + rehab loan all in. The lender will need to send an appraisal out to see what the estimated ARV (after repair value), in order to make sure that the ARV is above the cost acquired for that house + land.

    @Carlos Valencia @Albert Bui

    Interesting, I will reach out and see if this is something that they do. Do you lend in Alabama?
    0Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y
    Quote from @Sam Booth:
    Quote from @Jacob Sherman:

    Is this for an investment property ? 


     Investment 


    Id go to scratch and dent and get a stove installed . Hows the overall condition of the property > If the appraisal is marked subject to it won't be able to go conventional or DSCR

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  • Sam Booth
    OP
    Member since 2022 · 241 posts · 62 votes
    2y
    Quote from @Jacob Sherman:
    Quote from @Sam Booth:
    Quote from @Jacob Sherman:

    Is this for an investment property ? 


     Investment 


    Id go to scratch and dent and get a stove installed . Hows the overall condition of the property > If the appraisal is marked subject to it won't be able to go conventional or DSCR

    It needs flooring (bad carpet) painting and there is a hole in the side of a fiberglass tub. Should work for conventional except the oven situation. Looks like my lender can do a escrow withhold and get the oven and hood after closing. Still negotiating with the bank who is asking ARV value. I am trying to get it for around 75% of ARV and waiting for seller to accept offer. 

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