I am extremely familiar with renovation loans, I am a Renovation Loan Specialist with Wells Fargo Home Mortgage. The Nations leading renovation loan lender (where the loan officer's doing reno loans are required to specialize).... ok enough selling...on to answer...
The answer is multifaceted as your question.
FNMA properties must be double checked on HomePath.com to "see" the actual financing options available (look at the icons carefully), not ALL of FNMA properties are eligible for HomePath (regular) financing (which I do), but may offer HomePath renovation financing (which really suggests that there are certain issues that FNMA is aware of that will generally prohibit financing in general and they are not fixing it... AND is not exclusive to "just" HomePath Renovation, but ANY Renovation Loan options (FHA 203(k) (Streamline or Full) AND Conventional Renovation Loan Financing (also referred to as "HomeStyle") - And these Renovation Loans I also do...day in day out...
Using the renovation loan program correctly, the code violation can also be cured. This can be tricky, with open code violation there is generally an amount of money owed to the municipality as well...which cannot generally be mitigated unitl after the violation has been brought into compliance. WHO will be resposible to pay that? The seller? The buyer?
At the end of the day the seller is looking at the merits of the offer itself, not the type of financing. It is highly beneficial to have the loan officer communicate with the listing agent if you are planning on doing any kind of renovation loan, especially an FHA 203(k), this way the listing agent can be confident that you are (hopefully) working with a Renovation Loan Specialist that is providing your buyer with a Priority Buyer Letter showing that they have been thouroughly vetted and Preapproved for a Renovation Loan. by a Renovation Loan Specialist.
I would love to discuss this further with each of you!
Give me a call!
Dennis J Hearing
Renovation Loan Specialist
Wells Fargo Home Mortgage
You could either apply for an FHA loan with 3.5% down or you may also check to see if this property is approved for HomePath loan renovation program offered usually when the property is a Fannie Mae Reo. If the property is a Fannie Mae REO and offeres the Homepath, then you're looking to come in with as little as 3% D/P, no appraisal is necessary and you may be eligible to obtain up to $35,000.00 towards renovation cost. I highly suggest you consult with a lending institution of your choice for further information. Should you need any further help, please do not hesitate to contact me.
Best of luck.
Cristina G. Diez
Century 21 Premier Elite
This way you can just make an offer as an FHA sale and sign the code violation releases.
You'll get part of the money upfront at closing for the work to be done and when completed you'll fill out forms to get the rest of the money for your contractor.
The final FHA loan for you will be just one loan with one payment.
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If you have any other questions about buying Reo/ Bank Owned Properties I am happy to help .
Samantha Tenzer Friedman
Tenzer Realty Inc
Property is being sold AS IS. Can you elaborate on the the statement: This property is ONLY approved for Homepath Renovation Mortgage Financing. Buyer must sign hold harmless due to code violation.