What was supposed to happen was that your Loan Officer was supposed to review the appraisal or, in fact, a simple conversation with yourself or the Realtors involved could have given the Loan Officer an idea of this issue and he/she right away should have informed you that you needed to do a 203(k) in order to get this loan.
What few banks are willing to do, including mine, is to possibly hold funds in escrow for you to do the work after closing. Try asking your current lender or consider another lender who can quickly get you to a closing table.
Feel free to contact me if you have any questions or want a 2nd opinion. Good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
The bad news is that there are likely going to be delays in getting you closed. Lenders don't normally fund conventional or regular FHA loans on homes withough walls or flooring so you will need to get a different type of loan. The good news is that the seller is going to run into these issues with selling the home to anyone, unless they put the house back on the market and find a cash buyer - who by the way will only offer them a super lowball deal. So my point is the seller should be willing to work with you if you have a good realtor to negotiate things for you.
As stated below, if the seller won't fix these items then you will probably have to do an FHA rehabilitation loan, known as a 203k. These loans have different requirements and not everybody does them, but if your current lender doesnt then you should find a lender that specializes in them. Don't get caught up in rate shopping. The most important thing is locating a lender with expertise in the area, because having a good pilot on this is essential. Otherwise it can take forever to close.
Hope this helps. Best of luck to you
Which he did, so now I am closing very soon at a great price.
Most people don't realize you can get a mortgage after you close within a set time period and still be treated as a normal loan that is fully deductible. Or you can do a HELOC vs your primary, a margin loan, 401k loan, bridge loan or bank of Mom and Dad. Or maybe you just have money sitting in bank earning zero.
The amount you can get off to do a "cash" deal even if you are getting a mortgage after closing is worth it.
I got six years worth of the mortgage deduction in a discount for cash plus saved around 4k in closing costs. With Stocks and bonds at highs and banks paying near zero cash is becoming popular.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
#1 Listing & Selling Office on Long Island
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803