How to obtain loans on less-than-perfect properties (maybe without an appraisal?) (Charlotte: mortgage broker, credit)

[coollicks]

I have a house in mind, but friends and realtors have warned that it will fail mortage appraisal. Banks that I have called have given clear indications that they will not approve homes in below-average condition.

The seller (a bank) is not willing for me to to get the house repaired, before the mortgage appraiser comes in.

This is not an investment property and I would live in here. Can you folks please share your experiences in financing less than perfect homes?

[charlottere]

Ask an experience mortgage broker about "rehab loans" it may work for you.
Good luck!

[coollicks]

Originally Posted by charlottere

Ask an experience mortgage broker about "rehab loans" it may work for you.
Good luck!

Thank you CharlotteRE. I will explore that option on Monday. How about express path financing? Do they have less stringent guidelines as well.

another input - my credit is rated excellent with more than 100% savings than the cost of the house and NO current debt. Do you think that may play a part into getting some consession on the required property appraisal?

As usual, your posts are really helpful

[charlottere]

I am not familiar with the express path financing, but in any case make sure you understand the term and conditions of the loan.
On the other hand it seems that you have your heart set on that property, and I am sure you have very good reasons to feel that way. But, with your credit history and financial strength I'd suggest you to explore other options, look other properties that are available on the market and clear for financing. Remember is a buyer's market and you may be able to reach a more competitive property.

[QC Misfit]

Hard money loans or private money. They can give you 6 months to 3 years but will only loan up to 70% once the house is back to market value then re-fi with a traditional loan. If I understand you correctly why not pay cash for the house fix it up then take a equity line out on it?

[coollicks]

Originally Posted by QC Misfit

Hard money loans or private money. They can give you 6 months to 3 years but will only loan up to 70% once the house is back to market value then re-fi with a traditional loan. If I understand you correctly why not pay cash for the house fix it up then take a equity line out on it?

That's something I want to explore but not sure what the tax implications are? Also - in your experience, does that come out to be costlier than a traditional loan (in terms of closing costs, interest rate, tax benefits etc)? My tax planner company is so busy right now, that they did not feel the need to respond back to my 2 VMs that I have left at their office to discusss this subject!!

[QC Misfit]

Hard money guys normaly charge 4% closing and around 14% only intrest loans, they could also require and appraisal. So on a $100K home there fee is $4000 then you have lawyers and title work etc etc....

It is not for a long term solution by any means but works well for homes where banks will not loan money. Many investors use this route.