Posted on: 30th Jul, 2009 06:24 pm
I am looking to purchase a home. The one I found needs construction work. The owner does not have the money to fix it. The bank will not loan mke the money to purchase till the work is done. If she quit claims to me. I give her 10 grand. I will take a construction loan against the property fix it then go back to the seller and negiciete a final price.
Hi jennifer,
A quitclaim deed can definitely transfer the property to a private party. The owner can quitclaim the property to you. But this might not solve the problem. I think you should find out if you can qualify for an FHA 203k loan. This type of loan will serve your purpose of completing the construction work and buying the home. Under 203k loans, you do not need separate loans to buy the home, carry out the construction work and then finally getting a long term mortgage to pay off the construction loan.
A quitclaim deed can definitely transfer the property to a private party. The owner can quitclaim the property to you. But this might not solve the problem. I think you should find out if you can qualify for an FHA 203k loan. This type of loan will serve your purpose of completing the construction work and buying the home. Under 203k loans, you do not need separate loans to buy the home, carry out the construction work and then finally getting a long term mortgage to pay off the construction loan.
i think jenkin is right. if current owner is not getting construction loan what is the guarantee that for the same property you wil get?