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Loan approval for HUD house with repairs

Posted on: 01st Aug, 2009 01:21 pm
Ok this might take a while. Me and my fiancee are trying to purchase a HUD house. It has some very minor repairs that were required on our first go round with a lender (USDA loan). Being a HUD house though you CAN NOT do anything to the home until you close.

So we went with another lender and a 203k loan. He comes back to say that his lender has minimum credit scores and a minimum amount ($75k) for finance.

I am ready to pull my hair out with this situation.

The purchase price is $55k for a home with a HUD rated as-is value of $102k

Repairs needed are a few shingle on the roof which have blown off during its vacancy. A junction box for a shoddy light fixture install in the crawl space, securing the covering on a large concrete slab that has a pit for working on cars in it, and installing heat in the kitchen, bathroom, and washer/dryer room.

The 2nd lender is now saying that we can get a USDA loan and finance the repairs into the loan. Something the original lender said wasn't possible. Whats going on here??

My fiancee and I both have good standing jobs. We both meet the debt to income ratios for the amount of money we are trying to finance. She has great credit and I have fair to good credit.

What gives? Where and what should we be looking for?
jdubau55

welcome to mortgagefit

As far as your question is concerned it is elaborated one and I really got what you want to say..

Now I think if you have good credit score as well as your wife do have a good credit score so Surely the amount is also not big, surely you should go for the deal.
keep in touch.....
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Posted on: 02nd Aug, 2009 02:55 am
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