Has anyone spoken to you about a USDA loan? Obviously, the location of the home is factored in...but that might be the way to go...as you can buy a home in disrepair, and improve EXTERIOR items for up to 10% of the purchase price, as long as it appraises HIGHER than the purchase price equal to that amount.
In other words:
Purchase Price: 100k
You can do 10k worth of repairs, improvements, like Siding, Windows, and a roof.
Appraised Value would have to be AT LEAST 110k obviously, but that is a SUBJECT TO value...which means..
Subject to these improvements...what is the value of the home.
Plus, the USDA Rural Housing Loans are NOT subject to the new HVCC rules!
ONe Source Mortgage, LLC
Now the VA issue.. the VA has provisions in the VA Lender Handbook section 7.04 that covers Purchase with improvement. But finding a lender that handles those is impossible. I have contacted over 50 lenders and none of them do these loans. I have contacted the VA Inspector General to complain because it is listed as a benefit but there is no way to use this benefit. I have a letter in to my Senator also on this issue because the VA recently released a circular that leads lenders to believe Purchase with Improvement for foreclosures will not be done. This contradiction is the reason I sent a letter to Congress. I would suggest in the mean time, possible check with your state for home loan programs that are either state VA guaranteed or just state housing authority guaranteed. This week my state announced they are going to be utilizing stimulus funds to finance a program to purchase foreclosures that need improvement. Keep in mind this does not use all the benefits associated wit being a disabled vet, but at this point I may not have another option if I want to get into a home durig these record low prices. I hope to hear something back from the VA IG or my Senator soon... But if you have ever initiated a Congressional Inquiry it can take a while. Good luck and if you have any other questions from a Vet stand point let me know, I have spent the last year with the manuals and regulations trying to get this done. I too want to purchase a home with my disability payments and live off any additional income. which you think lender would love because you are not borrowing so much that you can't pay it back, and the income stream is guaranteed.
Disappointed Disabled Vet