Finanding options?

Asked by Melanne, Saint Louis, MO Sun May 13, 2012

I have a condo under contract for 112,500. It can't go FHA as it's association isn't approved (it's 1 of a 3 unit 3 story row houses; really cute). I could pay all cash for it but would leave me with nothing left for savings and to make money with the money so I'd like to put up to 50% down but I'm 2.5 years out from a bk discharge. What are my options for financing?

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Abu Musa, Agent, New York, NY
Sat Mar 30, 2013
You may talk to a mortgage banker. Mortgage banker will be able to discuss your options.
0 votes
Debby Ervin, Agent, St Louis, MO
Thu May 17, 2012
Disclaimer: Real estate agents are not finance experts! One option could be to pay cash and get an equity loan after you close for cash you need or call a recommended mortgage lender or mortgage broker for options.
0 votes
Catherine Yo…, , House Springs, MO
Mon May 14, 2012
Try a credit union. Sometimes they will allow you to put 10% down. They have been our best options under these circumstances.
0 votes
Kelly Messmer, , Saint Louis, MO
Sun May 13, 2012
you should call your lender and see about switching to a conventional loan to put 5% down. If that is not an option you may want to find something else. Your realtor should have found out if it was FHA approved before you wrote the contract. Multiple units are tough with FHA and VA.
0 votes
Don Tepper, Agent, Burke, VA
Sun May 13, 2012
Is owner financing a possibility? The seller will have a hard time selling since it's not FHA-approved. That's strong incentive for the seller to help facilitate the deal. Since you've got a lot of cash, you might start with a more conventional offer (10%-20% down) and then be willing to increase that up to 50% or so if needed.

Recognize that the condo is worth less than if it were FHA-approved, so make sure you're not overpaying by basing its value on approved condos.

Check with your Realtor for further guidance.

Hope that helps.
0 votes
It's owned by Pulaski bank (was a forclosure) so being a bank I don't know if they'll over look the having to be 4 yrs out from bk rule to sell it but if they want to sell it maybe they will and keep it as an in house loan. I wonder if I did do all cash if they'd drop the price further just to get rid of it and then do an equity loan but will banks do an equity loan with someone that has had a bk 2.5 yrs ago? Would I have better luck with a credit union or are they acting just like banks on the 4 years out ruke? know there has to be other options out there other than an FHA loan for me even with a bk 2.5 years ago; there just has to be. Thanks
Flag Sun May 13, 2012
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