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I'm interested in purchasing a home in a great neighborhood. However the owners have really let it go and there is a lot of moisture and termite damage. I had a Termite and Moisture come and do an inspection and as I suspected they found Structural Damage to the flooring and beams that support the floor, when they inspected the crawl space. I would like to get this house but the only way for me to get it would be to finance the house. I was told that would be difficult if there is structural damage.
Can it be done ...AND this house is being sold as is.
The only way it can be done is with a full 203k rehab loan. It's a trying process and finding a 203k lender (a non-streamline lender) could be exhausting. The second alternative would be a construction-perm loan, but you would have to have a class A contractor heading up the project and negotiate the repair contract up front.
There are no other typical mortgage loans that will permit you to close with structural damage. Unfortunately, the solution loans are hard to find and most likely expensive and come with strict criteria.
I'm interested in purchasing a home in a great neighborhood. However the owners have really let it go and there is a lot of moisture and termite damage. I had a Termite and Moisture come and do an inspection and as I suspected they found Structural Damage to the flooring and beams that support the floor, when they inspected the crawl space. I would like to get this house but the only way for me to get it would be to finance the house. I was told that would be difficult if there is structural damage.
Can it be done ...AND this house is being sold as is.
Thanks!
MOLD is a four letter work that will scare off a lender worse than termite damage. Are you really wanting to re-hab the house or is it a tear-down for the lot? A lender might be more inclined to lend for a tear down and new construction than a home with termite and moisture damage to the extend it has become a structural issue.
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
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FHA has a 203K loan that is designed to provide for rehabilitation and reconstruction but you have to find a lender that understands and is capable of dealing with the program. HUD will send out a consultant that will assess the property and provide the bid spec. They will give it to you to get estimates from contractors. Once you get the bids you then get a secondary appraisal to determine the property value after repairs. Then it is decision time, either the secondary appraisal will cover the repairs or you will need to make up the difference. Usually a lender that understands the process will in most cases not have a problem with the secondary appraisal, but it will depend upon the scope of the work and the asking price of the home. If it is a foreclosure the bank/owner is usually very helpful.
I have a VA home in need of foundiation repair. I am the owner and the house is already in my posession. The two year statue of limition has already expired.There is also damage to the inside sheet rock on some of the rooms. Can someone tell me of a lender who can help on this issue. The home is secured through the VA. Has anyone had this foundiation problem. What did you do to solve this problem.
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