Real Estate Forums

San Diego Real Estate · 04-20-2005, 10:03 AM

Ok Lenders,

When representing buyers that are wanting to buy fixer uppers! How do you get the financing pushed through with the repairs that are needed! Even with the buyer is willing to do those after the close to be able to buy the house at a lower price? Seems like the lender always wants those completed before close of escrow!

Las Vegas Real Estate · 04-22-2005, 12:11 AM

SD, doesn't it depend a lot on the loan to value ratio? Aren't lenders more lenient with more cash down?

afm1 · 04-25-2005, 12:57 PM

You can do a lot of things.

I think you are thinking of a Hard Money loan and yes, they do require some money down. Usually, 35% give or take. They are collateral lenders and they come with high interest rates and usually a pre-payment penalty.

You can hold money in escrow for the repairs with some lenders (rehab loans) and close. The money is actually held for the repairs.

Las Vegas Homes · 04-26-2005, 12:13 AM

It depends on the Mortgagee. As you know the buyer isn't allowed any cash back at closing, but some banks will allow a larger seller rebate. I've seen as them to be as high as 10k. Of course the appraisal has to be very strong.