How am I supposed to buy a fixer upper when the lender has these requirements?

[brownnugen]

With the market the way it is, I was considering purchasing a home that I would occupy for a few years, rent out when I get stationed elsewhere and then move back into when I get stationed back in the DC area. The best deals seem to the fixer-uppers and "as-is" that are increasingly available.

When I talked to the loan officer today, she said that the house had to be "100%", meaning that if the appraiser goes to the house and say that he says that the roof needs to be replaced (or something else needs to be done to the house). The lender would require those items be completed before closing on the house.

If the house is being sold as-is or the house is bank-owned and the owners aren't around, how is that supposed to work? I don't want to put any money into fixing the house until I have the keys in hand.

Did I misunderstand the loan officer or is something wrong here?

[AIR]

find another lender. get on the phone, there are definitley people out there willing to lend. I had trouble with a credit union a few days before closing because the roof had holes and there was a missing oven. I had a contractor friend write up an estimate for the roof, and went to sears and had an estimate for a gas oven. I put the money in escrow with the bank until these requirements were met and once they were they released the money.

[brownnugen]

It was Navy Federal Credit Union and they said something about FHA and industry standards. Something about how it would be considered an indicator of a bad loan if the house needed work to begin with.

What are some of the preferred lenders that at as-is or fixer upper friendly? I have an excellent credit score (north of 750) so getting a mortgage shouldn't be an issue, I just need to find one that will meet my needs.

[AIR]

get on the phone, google lenders in your area, or they don't even have to be in your area. If you make a few calls you will find someone who will work with you I GUARANTEE IT

[Debbie]

Use my broker, Tom Larkin. He was recommended to me by Jim Johnson. At least couple other MB members uses Tom.

I've been very pleased with Tom. Tom provides his articles for the MB newsletter several times.

Here's the info and tell Tom that Debbie and Jeff from Spfld, Il said "hi":

Tom Larkin
Manager/Sr. Advisor

Benchmark Mortgage
11160 Huron St, Ste 200
Northglenn, CO 80234
(303) 920-1052 Phone
(888) 894-3667 Toll Free
(303) 920-3289 Fax

[herbster]

Anyone correct me if I'm wrong but I thought that FHA had loan types that would cover the loan plus some fixer up expences. Find a different lender and get on the Gov. web-site and check it out.

[AIR]

the loan your talking about is a 203K and strictly for owner occupants ONLY.

You can also find a lender who offers 9 month terms and will lend you 100% including repairs & closing costs. The rates generally run 5+ prime, but you will be making interest only payments until you can secure your conventional financing.

[SlumLordMike]

When I talked to the loan officer today, she said that the house had to be "100%"

That is ridiculous. Stop short of giving her the middle finger like I would, but DO move on to a lender willing to lend.

If you don't find a reputable lender through previous suggestions, I have a broker or two I'd be willing to share as well. Credit unions seem to be a little stricter and more un-accommodating than others. The costs might be a little higher, but then a few points on the whole enchilada are a small price to pay for the overall meal. ;)

As suggested, most lenders understand that you will fix what needs fixing once you own it. If they are stupid enough not to, they don't lend to me.

[BSH]

I agree . . shop around for a new lender. If repairs aren't too extensive, escrowing the estimated funds needed is an option. However, most lenders I've dealt with have products that will fit your needs.

My favorite lender is Deanna Valeo with GMAC. Her number is 704-554-4961. She's the best. On the very rare occasion she does not have the right product for me, she always has a great person to refer me to.

Sometimes local banks are good for these sorts of things because they're familiar with the neighborhoods. It's worth looking into.

I hope it works out!

[The GUY]

Sometimes local banks are good for these sorts of things because they're familiar with the neighborhoods. It's worth looking into.

Best advice start here, local bank. You may make it further because the loan they would put you into would most likely be something they would more than likely keep. Now a days, brokers are loosing access to some of these programs.

[brownnugen]

Oh, the one thing that initially attracted me to Navy Federal was the fact that I could put zero down and not pay any PMI. Do you know if any other lender offers something like that?

[Debbie]

Oh, the one thing that initially attracted me to Navy Federal was the fact that I could put zero down and not pay any PMI.

Can't beat that!

[4closer]

absolutely call another lender. they are tightening up, but they are all different. try a mortgage broker who can work with lenders in any state to help you find the best loan