Posted on: 27th Aug, 2011 02:14 pm
i am trying to buy a house that has been forclosed on. the house has been vandalized and needs a few repairs. i was working with a mortgage man on a 203k mortgage to buy the property and do the repairs. but i didnt realize until recently that he had been dragging his feet and was not going to make the closing date. so since i didnt have time to find a new mortgage company, i had a friend of the family step up to the plate and is willing to pay cash for the house and hold the note as a bank would, and i make him payments. i am trying to find out if i go this route, if i can refinance lets say a year from now and pay him off. one company said it would be hard to do since it is considered a cash purchase, even tho i am paying him. any advice.
Welcome huntmaster,
Yes, it might be difficult for you to get a refinance in order to pay off your friend in full as the mortgage companies will consider it as a cash purchase. It will be better if you could find a mortgage company now and take out a loan from them.
Yes, it might be difficult for you to get a refinance in order to pay off your friend in full as the mortgage companies will consider it as a cash purchase. It will be better if you could find a mortgage company now and take out a loan from them.
If your friend is paying the cash for this home and you will be the owner, with his mortgage in place, you'd be able to refinance in a reasonable amount of time and obtain a 203(K) loan at that point to begin or resume or complete whatever repairs are needed. It'll probably be 6 or so months before a lender will be able to assist you in this aspect of the financing, I believe.
