Or, if the current home owners allow you access to the home to make repairs and you have the funds to complete them, you can extend the contract as long as needed. The lender will fund once all parties of the transaction are satisfied. (Including the final appraisal with all improvements verified by the original appraisal, with permits if applicable)
The answer is no, here is why...
....lets say doing the fixing you cause an Accidental fire....will your Insurance pay
for an Asset that does not belong to you ....
..or will you pay for it ?
Then the seller will need an Insurance Bond , in-lieu of fire or destruction...
Typically though these repairs are the duty of the seller. If you can not get them to do that there is a loan called a 203k loan. Not too many lenders do them, I actually do not either.
I have a friend who is pretty good at them if you want me to get you together contact me (click on my photo)
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
If you are the buyer, you should never make repairs because, unknown to most people outside of the Real Estate industry, there are more things that can prevent it from closing than any of us can list. There are a myriad of liability issues for possible injuries incurred on the job while making repairs. What happens if you spend money fixing a house not owned by you and it burns down? What if the owner dies without finishing the paperwork? Earthquake? Sinkhole? The list can go on and on in various directions...
There is also a loan known as the FHA 203K. It is a loan that includes the cost to repair and the money is held in escrow until after it changes ownership and repairs are made. Your lender may have some conventional loans that are similar.
The only person who can do repairs is the owner. If there are repairs needed for the property to qualify for your loan, have your Realtor do a Request For Repairs asking the seller to do the repairs. DO NOT pay for the repairs yourself until you own the house (it closes escrow and Title is transferred into your name). You don't want to pay for repairs before you own the house because what if for some reason, the deal doesn't close? Then you would be doing repairs on someone else's house.
Plus there are probably some legal issues to worry about. Speak to your realtor or an attorney to get advice on this.
May be best to walk away.
First of all, since you do not own it, you cannot insure it.
Second, since you do not own it, you cannot have constant access to it.
Third, everything in the sale is predicated on the beginning and ending condition of the property.