Unfortunately there is no conventional loan that offers rehab financing. The only way to go is through the FHA 203k. This is where your realtor should be earning their money and explaining to the listing agent or bank representative that you have a very strong offer and FHA or conventional financing should not matter. Most people are still stuck on the old ways of doing things and think that FHA makes you jump through hoops to get approved. The fact of the matter is that FHA is no more difficult these days to obtain. In fact, if the property is in need of some extreme work, i.e. electrical, roof, plumbing, etc...the chances of it actually closing conventional opposed to FHA are far less. If you need any assistance or you would like me to go over this with anyone feel free to contact me.
I too have seen the 'Clearing', 'Highest and Best', 'No FHA', 'Needs to Season' also 'Currently no Offers', but we had a problem uploading the offer to the bank, our fax had problems, I could write a book with all the excuses.
Weâ€™re currently in a â€˜Bank Marketâ€™ and sometimes more than not some donâ€™t care you want to make this your primary home and you end up competing with investorâ€™s below $150 in a bid.
Trends are that buyers are now going for short sale and backing off foreclosures as lots of games being played with bank owned!
Personally it should be that for â€˜xâ€™ amount of time only â€˜realâ€™ first time buyers, those that have never owned a home should have access to purchase the property. Then buyers who have not owned in the 3 previous years and this will be their primary has access to purchase, then lastly investors.
But who am I?
I had a buyer focused on homes that needed the 203K and lost out a few homes due to the loan, they are now in a home and with the 203k funds have made a jewel out of a home most all passed up. The listing agent claimed we couldnâ€™t get an FHA at all and well short story we did, I even called him to see if he wanted to come to closing. He had no idea we had everything in place to close as he was just waiting for the contract to run out.
I personally have not stumbled on what you are looking for but call other lenders and who knows what you will dig up.
Hope this helps,
GRI, ePRO, Real Estate Broker & Realtor
Visit my Bio located here on Trulia, just scroll your mouse over my picture and left click, also visit my website for innovative tools helping with your real estate decision in the Central Florida area.
The REO/Bank owned sellers are looking for cash offers as their first priority. ... quick and easy. Going with a straight FHA deal is time consuming and difficult enough without the 203K rehab or even downpayment assistance being in the senario. I am amused at the term "streamlined" when connected with FHA financing. If you are successful in getting the seller to accept your offer with FHA 203K financing, prepare yourself for some bumps in the road to closing.
According to a veteran mortgage broker that I refer clients to, there isn't a conventional rehab loan out there to be had and if there is a remote possibility that you find one, you would be looking at a 20% downpayment.
Best of luck to you. Hang in there... if it was meant to be, it will be.
Suzanne Ogden, Realtor
Charles Rutenberg Realty
I had a deal when I was a broker at PEFS that the RE Agent went 15K over the asking price of a counter bid and the bank rejected, customer had been per approved for well over that for a month.
A 203 is your best option, but get a firm counter offer and stick with it and see where you are at when the dust settles, I am sure you love the home its just having the patience to wait them out, (if you really even want to) I am sure with all the homes empty out there you could find another just like it if you have to, from a different bank maybe?
Sorry that you are having to go thru this, I know it is tough
America Home Key Inc