Cash is not a hang up, however what you might be speaking of is government owned properties. These properties are only available to owner occupants typically in the first 3-10 days on market. This is where alot of cash investors lose out, because by the time they are elegible to make a bid, an owner occupant (who usually mortgages) has an accepted bid on the property.
I have a few investors that like to flip properties and they do lose out alot on some of the best, because they are sold before they are even available for them to bid on.... more
Are you buying this as a primary residence? If so, then an FHA 203(k) loan is another type of rehab loan and the down payment requirement can be as little as just 3.5% of the purchase price + cost of rehab.
You can read at https://www.fanniemae.com/content/announcement/sel1106.pdf (page 2) http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1110.pdf (page 3) that a property condition of C5 isn't deliverable to Fannie Mae (nor Freddie Mac) until the repairs are completed, "deliverable" means the lender doing the loan won't be able to sell the loan to Fannie Mae or Freddie Mac until those repairs are done. There are other types of conventional loans that aren't sold to Fannie Mae or Freddie Mac, but not many, and I'd suspect they'd also require the items you listed to be repaired as well.
However the FHA 203(k) rehab loan can finance the purchase price + cost of repairs, so you can purchase the home and then make the repairs afterwards.
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct... more