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House Needs Work |
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Edith
We have found a home that is bank owned and sustained an incredible amount of water damage. The current bank bought the home at a sheriffs sale for $190, but the home is worth over $314 when in good condition based on similar comps. The house will need about $30,000 - $40,000 worth of work. We have been pre-approved for about $270. Is there a way to secure a loan for $270, but attempt to purchase it for around $225 and take the remaining funds in the loan to fix it up?
Will it be appraised for the current state or can it be appraised based on the home after the capital improvements? |
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The FHA insures a program called #203k, that allows borrowing of purchase price plus the money needed for extensive rehab work. Perhaps the bank that owns the property handles that FHA plan, or you could inquire of mortgage brokers who know what's available. |
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Edith
Originally published on July 15, 2007 |
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