The Half Million Dollar Question... Trying to Buy a Cash-Only, Single Family Property
I've spent the better part of 6 months trying to acquire the dream home... Its everything my wife and I ever wanted, but it is a short-sale, as-is, and the sellers will only accept cash offers due to the condition of the property (several violations with the town code, that are minor but known).
I can afford the asking price with a conventional loan, but that's not acceptable... my other strategy was to buy the property with a hard money loan and refinance, but nobody does hard money on owner occupied homes.
Been trying to find a loophole around this one for a while, but have come up empty thus far.
Thank you
Quote from @Alan Held:
I've spent the better part of 6 months trying to acquire the dream home... Its everything my wife and I ever wanted, but it is a short-sale, as-is, and the sellers will only accept cash offers due to the condition of the property (several violations with the town code, that are minor but known).
I can afford the asking price with a conventional loan, but that's not acceptable... my other strategy was to buy the property with a hard money loan and refinance, but nobody does hard money on owner occupied homes.
Been trying to find a loophole around this one for a while, but have come up empty thus far.
Thank you
Hello Alan!
Have you considered a renovation loan (i.e. Homestyle loan)?
Perhaps the seller would be willing to enter contract if you had this type of loan and waived financing contingencies which guarantees the closing OR you lose your initial deposit.
Regarding the violations, not all lenders require municipal searches therefore minor violations can be resolved by holding funds in escrow at closing or a credit at closing to account for the violations.
All the best to you on this acquisition!
Abel
Location?
There are a few hard money lenders if you have 25- 30% down.
What are the violations? Unless the cost to cure less than $20000 the problem is getting a contractor to commit to under 19 to make it fly on a Homestyle as costs always overrun and seller knows how much repairs really are needed.
Time is limited and seller's problems grow daily... they want a cash fast deal
