Financing in Franklin>Question Details

Crial, Other/Just Looking in Franklin, PA

What options do I have? High DTI, realtor says house won't qualify due to condition, I really love the place!!

Asked by Crial, Franklin, PA Sat Sep 25, 2010

I found a new home that i really want to move to. It was amish owned for 11 years so although water, sewer, and electric systems are there and were previously used, their current condition is a question mark. Due to this and seriously wet basement they say they will only accept cash offers or preapprovred for the fha 203k loan program. I applied and was rejected due to my high Debt-to-Income ratio. I own five rentals plus my home and have 5 mortgages plus about 40k in cc debt. Our credit is 647 and 720. We owe 66k on our home which is assessed at 95k which we will sell. The new home is cheaper, asking 58k, and a steal of a deal (last sold 130k, bank owned now.) We really want to buy but don't know what options we have left. Will a conventional investment loan lend on propperties in disrepair? Any advice would be appreciated, we also have about 5k cash. Thank you all, Carrie

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Answers

5
Hello Crial,

There are rehab loans for investment properties However you are still going to have the same DTI issue.
How bad is it? Sometimes your local banks are a little more forgiving if the portfolio the loan

Alan Openshaw
Cornerstone Lending Inc
0 votes Thank Flag Link Mon Sep 27, 2010
Hmm. This is a difficult one. My understanding of conventional loans is that properties that need repair can qualify. But, I think this is an issue that is best answered by a loan officer in Pennsylvania.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Sun Sep 26, 2010
Hi there Crial,
Oh I do love the Amish country homes as well. I know that I have investors that will take a total look at your total picture but they may want more money down, doing an equity investment with you. Don't know without all the facts.
If you DTI is not crazy there may be a chance to get an exception through some of the vendors I know - or did any one talk to you about lowering the DTI by paying down some of the cc debt.
Sincerely,
Celia
Web Reference: http://www.homeloandiva.com
0 votes Thank Flag Link Sat Sep 25, 2010
You might consider equity partnering with another investor on this deal.
0 votes Thank Flag Link Sat Sep 25, 2010
Will they allow an inspection? If you pay for it, have it done and see what is really wrong. Maybe this will help.
0 votes Thank Flag Link Sat Sep 25, 2010
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