Conventional Mortgage Requirements

[Travis Bobo]

Hey BP,

I am currently working on locating my first deal.  I am looking to buy and hold and we are looking at property in the 50k to 100k range.  I have A+ credit and will be able to put 20% down.  Most everything we have looked at needs some, if not alot of repairs. We have seen alot of "as-is" properties.   My question is: With a conventional mortgage, what is the tolerance for condition of the property and repairs needed?  

Thanks

Travis

[Tony Nguyen]

Hi Travis, if you're talking about whether a property will be financeable then it'll come down to the appraiser deeming the property as 'livable'. As Jake mentioned above, take into account your costs out of pocket for repairs to determine your ARV and whether or not it still makes sense to purchase for cash flow. Or you could put down less money and use that for repairs to lower your overall cost. Or possibly look into a renovation loan if it makes sense. Hope this helps.