Home Buying in 12550>Question Details

Leah, Home Buyer in New York, NY

Why would a house be listed as cash only?

Asked by Leah, New York, NY Mon Jan 5, 2009

I can not afford to pay cash only. I want to do a 203k loan to this type of home so I can incorporate thechanges. I am running to to problems though.

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Usually a home that says cash only has issues that a conventional mortgage will not allow. You can usually buy a home that says cash with a 203K. You should have an agent to help you and you should have one that specializes in foreclosures. They are very tricky and require a lot of extra work. Good luck!
0 votes Thank Flag Link Mon Jan 5, 2009
Hi Leah,
A home is listed as a cash only when the conditions of the home are so extreme that mortgage financing is not possible. It is also a strategy to attract investors willing to come and see the home that lends potential for improvement and a cash return provided improvements made. However there is always the financing possibility of these type of homes provided the potential buyer seeks a 203K FHA mortgage.

Ramon
0 votes Thank Flag Link Tue Aug 11, 2009
Sometimes homes appear on the market with CASH only due to the absence of heating systems or the septic system is failed. Basically a bank wants the home to be liveable at the time of title transfer. In a case like this ,Wells Fargo, has a product which lets you estimate the repair costs and added to the purchase price of the home providing that it will appraise for that total amount once the repairs have been done.
0 votes Thank Flag Link Thu Apr 30, 2009
Leah,

What type of problems are you running into?
0 votes Thank Flag Link Mon Jan 5, 2009
BOWED BASEMENT WALL
Flag Sun Mar 3, 2013
Many times due to the condition of the home, there is no possibility of obtaining financing.

http://www.RemoRealty.com
Web Reference: http://www.RemoRealty.com
0 votes Thank Flag Link Mon Jan 5, 2009
What problems are you running into?
0 votes Thank Flag Link Mon Jan 5, 2009
You might have to go to a hard money lender whose biggest is that your getting the house at 70% of the after repair value minus the costs of repairs and renovations. They usually hit you with 2-3 points and anywhere from 12-16% interest. If this is something your seriously considering, give me a call so I can explain in more detail.
Thanks,
Bill SMith
Keller Williams realty
Fair Deal Home Buyer, LLC.
914-420-1974
0 votes Thank Flag Link Mon Jan 5, 2009
Listings that can only be sold to cash only buyers tend to have issues that would make it difficult for a bank to get involved in financing it. Issues such as condition, work that was done without proper permits or other title problems. These properties as long as you are an educated buyer can make for very good investments. These are properties that are very often sold for much lower then market value. You just need to have the knowledge needed for fixing what may be wrong.
0 votes Thank Flag Link Mon Jan 5, 2009
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