I am looking to buy a house that i saw. No lender wants to give me a loan because the house has was abandoned

Asked by Daren, Los Angeles, CA Mon Mar 30, 2009

during construction. It need work and i now how to do all of it. what kind of loan would apply to me needs.

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Thu Mar 12, 2015
Hello Daren, you may consider a 203k purchase loan from a minimum 580 fico score. You may consider a streamline 203k with repairs between 5-35k. If you have credit issues, your credit scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

It only takes a few dozen questions to qualify, go over your options and email you listings to study and compare. Here are some links to study as well as web reference links to many loan program pages offered...

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Veteran & VA/CalVet Loan Specialist
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22+ Years Experience
BRE# 01140252
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0 votes
Janaka Perera, Agent, Sunland, CA
Thu Mar 12, 2015
There are many lenders and programs available for rehab. First hire a local real estate broker who has building/rehab experience. There could be permit, building/soil issues that stopped the project from moving on at the first place. A bargain price on the surface many not be a bargain if you have to resolve multitude of problem. Do some investigation first. An experienced local broker can guide you through the process.
0 votes
dl0809, Home Buyer, Sunland, CA
Fri Nov 30, 2012
I work in the area of Real Estate Notes and I work both with Seller and Buyer. For this reason I have access to funding from a private lending company that work with people that cannot receive Bank loans due to some reason. This company have several program and have approved people which other have turned away. There is no upfront cost to you.
If you will be interested to check it out and submit a request, you can contact me at dl0809@hotmail.com
Best, Daniel
0 votes
M.D.J, , Los Angeles, CA
Mon Mar 30, 2009
Then it's time to talk to a Mortgage Banker / Broker who can do the different types of rehab loans available so feel free to contact me to dicusss your options...Marvin@Marvinloans.com
0 votes
Tisza Major-…, Agent, Upland, CA
Mon Mar 30, 2009
Hi Daren,

If the home was abandoned during the construction phase (without ever having been lived in) it might indeed be difficult to find funding. If the home was abandoned during the reconstruction phase (i.e. during a rehab or remodel) but had been lived in prior to that things might be better even if the home is currently not habitable but is not a total loss.

As Sonja below mentioned, a 203K loan, which is an FHA loan that functions as both a purchase money loan (meaning the one you use to buy the home) and a construction/rehab loan rolled into one, could indeed be an option for you but it has some special requirements all its own. None are hard to fulfill, you just need to work with folks who are familier with how this loan's needs differ from a traditional FHA scenario.

The good news where the 203K is concerned is that it falls within the same guidelines and constraints as a regular FHA loan (loan limits, credit, downpayment, etc.) and it is a fixed 30 year loan with the same interest rate as its better known sibling.

The bad news is that among other things, it will require a different type of appraisal (so your appraiser needs to know how to preform the operation and how the report and findings need to be presented to fulfill the requirements), an FHA approved lender, and it will also require a different type of home inspection as well. These are not deal breakers and should not cause you to avoid investigating the possibility, (and I highly encourage you to do so by the way :-) but if the team you are working with does not know the in's and out's of this transaction it will be difficult if not impossible to end up with a happy ending for all concerned.

If you are interested, I would be happy to talk with you about your situation and to introduce you to my team of experts who know everything there is to know about how to take these transactions from start to successful finish.

I hope that helps somewhat. If you have any other questions please do not hesitate to ask. Thank you again for your question here on Trulia. I look forward to speaking with you soon.

Take care and have a great day!

Tisza Major-Posner, Realtor, IVPG Realty (909) 837-8922 or (213) 392-4084
Web Reference:  http://Route66Living.com
0 votes
Sonja Adams, , Ashburn, VA
Mon Mar 30, 2009
If you have a lender to talk to, ask about the FHA 203K loans...they are basically loans given to renovate a home and would be an option if the loan limits work for this property.
Web Reference:  http://www.myvadreamhome.com
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Mon Mar 30, 2009

A construction or renovation loan might work for this project. I have a great Direct Lender that does both. Contact me and I will hook you up with him directly. That way you can give him your particulars and the home's particulars and see if he can help. He also does FHA Renovations loans that require as little as 3.5% down, so if anyone, other than a hard money lender, can help you he can. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes
Dp2, , Virginia
Mon Mar 30, 2009
You might be able to get a hard money loan.
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