Financing -- Loans/Real Estate Purchase Help
Hello I live in Florida and I saw a house for sale with 5.50 acres on it. The sale price is 85,000. I was pre-approved for a 80,000 loan and I also have 20,000 to put down. I am trying to buy it but the bank does not want to give me the loan for that house because it is in bad condition and in need or repairs. I know I can repair the house because I know construction and my brother has offered to lend me money to do the repairs. I am not sure what I can do to still get the house. The bank is now saying they want proof that I can afford the repairs. I wanted to buy the house and fix it up, but I don't know what to do now as they bank does not want to give me the loan for that specific house. Is their anything I can do to get the house still? Thanks for any help.
Randy, Sorry I do not specialize in home loans. What I would do is have your brother go ahead and loan you the money so that you could verify to your home loan lender that it is in your account and the funds are available to complete the repairs. This instance is occurring quite often with foreclosures that have been damaged or vandalized. The seller either cannot afford to fix it or is unwilling to and the lender will not lend on the property until the repairs are made. I would double check with your home loan lender and see that if you could provide them with an account verification of your cash savings would this be adequate to meet their requirements. Make sure and find out how much needs to be in this account to meet their requirement. Borrow the funds from your brother, make the deposit, and obtain a verification on the account. Best of luck to you.