Financing in El Paso>Question Details

Mr. Barajas, Home Buyer in El Paso, TX

Fannie Mae Foreclosure Catch 22: Home needs repairs that Fannie Mae will not cover.

Asked by Mr. Barajas, El Paso, TX Tue Feb 26, 2013

I am in the process of purchasing a Fannie Mae foreclosure. The home is rated at a C5 and can be rated at C4 once repairs are completed (no major repairs).
FNMA will not make the repairs, and will not allow for repairs to be made unless I own the home. The lender will not finance the mortgage unless the repairs are done, and the home is at a C4. Basically: I want to make the repairs to get a C4 rating and qualify for a loan, but I can't because FNMA won't allow it until I own it, but I can't own it until I make repairs.
Any suggestions will be appreciated. I really like this property but I don't know how to go about it.

Thanks!

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Answers

2
The lender can close the loan and have the repairs done after closing..... They just hold some money back at closing to pay contractors based on their bids.
You cannot do the repairs yourself, but this is an option.

Many names for this type of loan. "Purchase Plus' is what we call it



Tom Burris
Mortgage Banker
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0 votes Thank Flag Link Wed Feb 27, 2013
I may have just the answer for you. I am working with 2 other similar transactions. If you are not already represented by a Buyer's Agent we need to talk. I can be reached on my mobile at (915) 549-1770.

Michael Bray, ABR, AHWD, CSP, eCertified, GRI, TAHS
2010 Texas REALTOR® Hero
EXIT West Realty
El Paso, TX 79912
(915) 549-1770
mailto:mbray@elp.rr.com

Presiding Officer, Texas Department of Housing & Community Affairs, MH Board
Vice President, El Paso Housing Finance Corporation
Commissioner, City of El Paso, Building and Standards Commission
Member, City of El Paso, Zoning Board of Adjustments
Member, City of El Paso, Health Facilities Development Corporation
Former Director, National Association of REALTORS®
Faculty Instructor, Texas REALTORS® University
0 votes Thank Flag Link Tue Feb 26, 2013
Thank you so much for your response! I will give you a call tomorrow morning.
Flag Tue Feb 26, 2013
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