Offer accepted but financing fell through even though preapproved

[Zoe Mercier]

I got preapproved with a lender, submitted my offer and it was accepted. Now the lender is saying that they can't lend because the house cost is so low that the closing costs would violate the predatory lending Section 32 (we had planned to fund the renovations ourselves). Even their reno loan option would not be enough because it's a small house and the ARV may not work for them. Now we may lose our deal :( Just wanted to vent because this would have been our first flip and we are running into roadblocks.

It's discouraging but we won't give up. We do have a private lender for some of the costs. I have outstanding credit so I'm going to apply for a personal loan with my credit union and see if we can use that, too. This traditional mortgage route is for the birds! But we don't feel like we've worked our way up into hard money territory yet, either. 

Anyone else have issues like this? What did you do to keep moving forward? Thanks!

Zoe from Tallahassee

[Joel Owens]

If the amount is small try getting a HELOC from your house. Those often have really good rates like 2 to 3% for 1 to 2 years. If you have good equity in your house this might be a way to go.