I know that's not what you wanted to hear but it may be worth exploring once again.
Edge Report: http://edge.mortgagecoach.com/report/edgereport.html#13361-0
Take a look at the report, I think anyone that is strapped for cash that buys a property that needs repairs and chooses to forgo the repairs rather than purchase with a 203K loan is making a huge mistake. The cost of repairs will only escalate as you defer needed maintenance!
Your perception of the 203K loan is based on a perception that has been a result of inexperienced Loan officers trying to do 203K loans.
FHA Appraisals require that Health and Saftey issues be taken care of as part of the work to be done to the property. I would argue that having the property brought up to minimum standards to be a good thing.
I personally close 203K loans in 30-45 days and amd closing 3-5 203K loans per month. I met Heidi below through a 203K loan that I originated from a client that found me online. I would love an opportunity to discuss the loan program with you and your realtor. I would bet that both of you woudl be shocked at how easyy and painless they can be!
As for my lender, a small credit union, I was just informed that holdbacks aren't allowed on their loans.
I was just trying to see if there were any other ideas out there. The sellers seem willing to work with me. I think they just want to sell the house. It's been on for 9 months and my home inspection was the first! The roof is the big ticket item. I just might have to ask dear old dad to help me out with the roof :)
You say you don't want a rehab loan. I'm not sure whether you'd included a 203K in that category or not. But a 203K is really worth considering.
You might be able to pick up some money by having your Realtor lend you part or all of his/her commission. That's the way I handled the purchase of my first house. But, from your description, it doesn't sound like that'd really be enough to help you.
Since it's an estate sale, I'm guessing the current owners (children of the person who'd lived in the home) don't have much interest in sinking a bunch of money into the rehab. (Maybe they do, and maybe they've got the cash to do it. Certainly ask. But often they don't.) They just want to sell the house "as is." If that's the case, they'll be flexible on the price, but--unfortunately--not on what they'll be willing to do.
If that's the way it is, really, you just may have to walk away from the potential purchase.
Hope that helps.
Have you considered an FHA 203K Renovation loan? This program will allow you to put additional funds aside for the renovation. What's the purchase price of the home and how much do you expect the renovations/repairs to cost?
This question is best suited for your lender. A rehab loan may not be the worst thing. One of my lenders here in GA has an escrow holdback, which the seller is paying for the repairs out of the closing funds. The funds will only be released to a contractor. This is a much cleaner process than the old, "allowances", which we know many lenders did not allow.
But again, talk to a few lenders to see what programs they offer in your area. Hopefully the sellers are motivated and will be willing to work with you.
Better Homes & Gardens Real Estate Metro Brokers
The Federal Government has a fund set up to assist you in the expense to remove inground oil tanks....
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