Financing in Tulsa>Question Details

Aaron Oxford, Home Buyer in Tulsa, OK

Wanting to buy a freddie mac home and they will not accept a FHA or conventional loan. Where do we go from here? Oklahoma

Asked by Aaron Oxford, Tulsa, OK Mon Apr 4, 2011

This is a home in Creek County Oklahoma.

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Aaron Oxford - Instead of copying/posting the entire post, you can view the following thread about the 203k/rehab loans. A 203k loan can be done in any state in the country. Depending on your credit profile and down payment, we could set you up with a HomeStyle loan and if you're buying a Fannie Mae owned property, we could do a HomePath or HomePath Renovation loan for you. There are tons of options for properties in less than perfect condition. These loans can be used on perfectly good homes as well as multi-family (up to a four-flat/unit property).…

@Jennifer, A 203b is a standard FHA loan, that wouldn't be allowed on a property that needed more than 5k in repairs or needed structural/foundation repair.

@Cindy, nice job on getting educated on the benefitsof rehab lending.

@Phil, feel free to call me if you'd like a primer on rehab lending.

If the property says "cash only" they usually won't accept financed offers although from time to time they do if you're making an offer with a rehab loan.

Post additional questions here or feel free to contact me via my profile/website.
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1 vote Thank Flag Link Wed May 9, 2012
Hi Aaron,
Many others, especially here in Tulsa, also "feel your pain.". Banks do NOT want to loan money on these often-distressed properties so you have to have your own cash, find an investor, or sit on the sidelines.

But there are some solutions to get either an FHA loan (strict guidelines) or even a Conventional (20% down required) but it will take patience and the right Agent.

First, INVESTIGATE every new foreclosure that goes ACTIVE. You may be surprised that some are in good, sometimes better than good, condition. I bought 10 myself in TULSA over the past 18 months and I would say 2 or 3 would have been approved by FHA standards.

Second, make the program work for you. About half of Fannie Mae and Freddie Mac (Homepath and Homesteps respectively) have their own financing for mortgages where you can even factor repairs into the loan. HUD has its own version, too. You will still need good credit, employment etc. But it brings those GREAT deals within the grasp of more of mainstream America. Contact me here in Tulsa you have any questions, OK?

Best of Luck!
0 votes Thank Flag Link Tue Oct 16, 2012
You could look into HomePath financing or, as suggested below, 203k or 203b financing. You could also look into a small local bank, sometimes they will personally loan the money, if it looks "smart." Good Luck!
0 votes Thank Flag Link Fri Apr 22, 2011
The 203K financing Cindy recommended is a good idea. Basically for an appraisal the house cant have holes in the walls, peeling pain, missing flooring, etc. How the lenders look at it is if you default on the home, would they be able to sell it quickly to get it off their books? So kind of keep that line of thinking in mind when looking at homes. It doesnt matter what color the paint in the home is (it could be bright pink or anything crazy), just as long as it isnt peeling, its fine. Same goes for carpet, it could be 70s shag but its fine as long as there arent areas that are missing that carpet or the carpet is coming up, that type of thing.
Good Luck!
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0 votes Thank Flag Link Thu Apr 7, 2011
You may also look into 203K financing. This is a rehab loan that allows you to finance the repairs. You can call Barbara Bell at Spirit Bank for more info 918-850-5649.
0 votes Thank Flag Link Mon Apr 4, 2011
We go to the next home that will accept FHA or Conventional.
Because of the condition of home the financing option is not available.
Web Reference:
0 votes Thank Flag Link Mon Apr 4, 2011
Aaron unfortanately some bank owned listings are in such bad shape or need more work/repairs than any bank will allow in order to give a mortgage on that properties. FHA is the srictest and requires everything to be complete and repaired. Conventional loans have a lower standard but do have a minimum set of guidelines such as water muct work and heating system must be functional. You should start with your loan officer to get the guidelines for the loans that you quailify for.

Some listings are listed as cash only sales, unfortanately unless you have cash, the banks will not consider any offers with a financing or inspection contingincy.

Please see my blog with a full list of tips and advice for buying bank owned homes.
0 votes Thank Flag Link Mon Apr 4, 2011
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