What is the liklihood of a lender approving a loan for...

**unicursalhex** · 08-03-2010, 09:48 PM

What are the odds of a lender approving a loan for a really beat up house listed as a short sale for around 100k less than other houses in the area? Its messed up really bad inside, outside looks nice though. I was told that lenders wont lend for houses in this condition no matter how cheap, but I cant imagine that being true. This property with about 50k worth of repairs can be awesome.

Also, I will need a construction loan for more than 30k, are there any mortgage/construction loan combos? I heard of the 203 rehab loan but dont know a whole lot about it.

I really want this house and any tips you guys could give me for getting both a mortgage and a construction loan would be greatly appreciated.

**Greg** · 08-06-2010, 07:12 AM

Start calling your local lenders until you find one that will do a rehab loan. The 203 rehab loan works but there are different programs with different lenders.

Don't get discouraged if some of the lenders shoot you down. Keep calling until you find one. This is a great way to get a house.

**unicursalhex** · 08-08-2010, 12:48 AM

Thanks, I have talked to a couple and got shot down, my credit is good (around 700) but they dont seem to want to do it. I will keep trying though

**minnesota-mls** · 08-09-2010, 03:30 PM

You probably have already done this, but I always recommend buyers to find a top Realtor in his or her area to "plug in" with. This agent should have the contacts that you are looking for from a lending perspective.

Regarding what a lender will approve or not approve, have your agent work up a good market analysis on the home.

If the listing agent is an experienced CDPE, he or she will have the home listed a price or range that they believe the lender will work with.

Ultimately however, we always tell our buyers to be prepared for a counter offer from the bank. Just because the seller has executed the purchase agreement does not mean of course the lender will take that price.

Find a top real estate agent in your area. Or of course we are happy to help you find a top RE/MAX agent in your area too.

Cheers!