So, I am looking at a house that the owners know needs some work. In tune of $12k. That said, neither the sellers nor myself have that kind of money on hand currently. What I wondered is if anyone had any experience working the repairs into the sale so that they would happened after the house closed? The seller owns it outright, so once they have the cash, they could easily write a check for the work.
Has anyone done anything similar to this? Is there another route that might work? I'd do the repairs myself as long as I had the cash for the materials. Can you write an offer where the seller gifts you cash after closing? I'm trying to get creative to make this work.
Ok, so I know the seller can't just gift you cash. Don't know why I wrote that, but I was more thinking on the lines of the repairs get worked into the closing where a check gets written to the contractor.
Ask your lender about a "repairs escrow". The $12k is withheld from the seller's proceeds, then distributed to you to pay your contractor, after repairs are complete and inspected by the lender.
How are you trying to finance the deal? Have you looked into an FHA 203k?
You can also check into renovation loans. I know Wells Fargo offers them. After the renovation is complete they will reduce the interest rate and turn the loan into a conventional loan.
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