I have come across a distressed seller . He is selling his home for half the apprased value. my credit is a 580 and I don’t think it is high enough to get a traditional mortgage. He is not interested in and creative idea’s that will leav e him tied to this property in any way shape or form. Does any one have an idea of how i can finance this deal and get the $7,000 needed to do the repairs( paint, floors, landscaping, and roof )
Dont see it being a problem with financing based on what you have said.
Yeah. 580 can get you 100% financing.
You can get an FHA 203K for the repairs.
You should contact a lender.
Thank both of you for your prompt assistance
ditto…an easy one for sure .
You are quite welcome.
I am assuming that this is an investment property.
I am not sure where you are going to find 100% financing with a sub 600 score on an investment property. It may be available from an independent but I have not seen it available in the main stream. (B/C Lenders)
A 203K loan is for O/O properties only and has not been available for N/O/O for several years. Just found this link may help http://www.fhainfo.com/fha203k3.htm
I would assume that by your statement it needs a new roof. If it is in obvious need of repair and is noted on appraisal, you are going to have a tough time getting someone to accept it. They will want the repair completed prior to your purchase. You may be able to use a HML depending on the scenario.
I would suggest that you have someone look closely at your scenario and clarify that funds can be obtained before you take the leap. Good Luck!
Mdhas has a point that I overlooked. Is this property N/O/O? If so, and you don’t have the cash or your credit is bellow 600 he is right. Start looking at hard money and even then you are a going to want to have atleast a little cash reserves.