I have been renting my current home for the past 2 years. My lease expires in May and my landlord is interested in selling the property to me. The appraisal has just returned at $126k, which I am planning on offering less, because of needed repairs and updates. It is a 2BR/1.5BA bungalow with and unfinished upstairs, basement and 1 car garage. Once I am done, the upstairs complete, the house will appraise for much more. Plumbing is already in place for an upstairs bathroom, and I plan to add 2-3 bedrooms as well.
What are my best options of purchasing? Can I get cash back to do the repairs? My mid-score is about a 640. Looking to do this as soon as possible…
I would like to have some cash or escrow available after purchase to do some of the upgrades and then refinance the loan after the upgrades are complete.
Since I have been a great tenant for the last two years, (never late on rent, cut grass, etc., as a matter of fact, in the last two years, I have only called her for one problem- because I refused to accept the $400 repair to the central air unit) I don’t plan on paying more than $115k and I will have her pay closing costs.
Yes, I have qualified for a mortgage. Thanks for your response.
I’m not sure what a “cost-to-cure” is, but the upstairs of the house is just a rough in shell, which is about 6-700 sq ft of living space that needs to be completed. Sort of like an attic.
If I can qualify for a rehab loan for the situation, I’m all for it. I plan to refi after the rehab, anyhow. Thanks for the reply.