Financing in San Antonio>Question Details

Jeanna Marti…, Real Estate Pro in San Antonio, TX

Is it possible to get a conventional loan on a property that needs substantial repairs?

Asked by Jeanna Martinez, San Antonio, TX Tue Sep 30, 2008

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Yes, I can provide you with a conventional renovation loan. one loan, one closing, and one monthly payment.

Will
Wells Fargo
willis.addo@wellsfargo.com
0 votes Thank Flag Link Fri Oct 3, 2008
It is possible but even harder these days. the lender will want to make sure you have the resources to complete the repairs by either having them done before closing and paying at closing or putting the money in escrow to be done after you close. Sit down with a local and trusted loan officer, they can tell you what you can qualify,l be up front with what you are looking for and they can help you. good luck.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Sep 30, 2008
It probably depends on the repairs and the plan to get them fixed. You can also possibly get a 203k FHA loan specifically for this purpose. Make sure the provider of the 203k is experienced with this specific loan type though. A newby or first time to do it loan officer might have trouble getting it done.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Tue Sep 30, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Jeanna:
Yes, possible... but not easy. To get a loan on a property in need of substantial repairs, there are only a few loan products out there, and now they are even tougher to qualify for. The Buyer has an extra burden of proof that they will and can improve the property to it's potential value, and the property has to appraise at the "As Is" value. In today's economy, very, very few conforming lenders will even consider that kind of paper - even with perfect credit and 20-30% down. There are non-conforming lenders out there, or portfolio lenders, but the rates are typically high. In reality, your buyer needs to be committed to the long haul, your lender has to be willing to do the work, and the seller...well, the seller just needs to be patient.
I would recommend avoiding the scenario unless you have all of your ducks in a row before even starting the process. Find a lender willing to do it. Then prepare your buyer for a rough process that could end with them losing the inspection and the appraisal money.

Cash is king. Lot's of luck to you.
0 votes Thank Flag Link Tue Sep 30, 2008
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