Creative Way To Buy
I rent a home that has been in the family for 100+ years as a personal residence. Our intention was to purchase the home, make repairs and lease the property out. We have had medical setbacks and no longer have the downpaymnent/ credit to outright purchase. We have made some 6k in repairs over the years but the relative owner will not use that as downpayment and hold the mortgage. We need to purchase this house but need a creative way to do so. We need to be able to acquire about 20k at closing along with a mortgage to bring credit up to speed and make repairs(siding, some windows, minor kitchen and bathroom repairs, etc).
Any creative ideas on accomplishing this? :-?
Talk to a mortgage broker there are hundreds of loans and programs available. Talk to your city urban development department about grants and low interest loans to purchase and repair old houses for owner/occupancy. Ask the mortgage broker about HUD 203(K) loans.
Thanks, I'll get on that right away.
So give us some more data to work with. How much is the house worth? When your plan was to rent, repair and purchase what was the purchase price. How much of the 20K is to clear up your credit and how much is the repair budget? How long have you been renting? At what terms? do you have copies of your rent checks? Have you made those payments in a timely fashion?
The owner relative, whats their story? The essence of a truly creative deal is to figure out what everybody wants, really. Not just their surface demands.
Tax assessment about 60k, house repair/ credit repair is about 50/50. have been renting about 6 yrs (mostly due to change in health) on a month to month/ buy when ready agreement. do have copes of on time rent checks. owner/relative is retired from several positions, this rent helps 'support' their plan to accumulate cash for kids college, retirement, 500k personal residence, etc.
As stated on prior post, just get a red hot mortgage broker and lay out the problem and let him play with the appraisers etc.
Are you sure your health is such that this is what you want to do? The relationship with the owner. Can it be played in the lower octave, you know, All in the family, Repair and Redo the House so that it once more becomes an expression of the many years of family history. Should go down well in Virginia.
I once researched my family found a founding member was hung as a horse thief. I stopped.
The beauty of Historical housing is that the appraisals can pretty well go anywhere you want them.
In repair take great care. Little things that most people do not consider. Your timbers for example they are at true dimension so you have to cut them all to measure as the existing measurements have changed. a 2 by 4 is not really a 2 by 4. It has been reduced.
I did an old Adobe out here and had to cut all my wood pieces to true measurements. Slowed me down and that was only one item of many.
Good luck enjoy it sounds like a labor of love.
Cheers Lucius
if you check on the internet a local newspaper you might be lucky to find a commercial lender who would finance this property for 100%.
Eleni
Thank you all for the great info and directions.
I'll keep you posted as to what is working.
the first thing i would do is put a lien on the house for the ammount you have already invested into the house. that will let the relative know that you're serious about the money you've already put into the house. then you could approach the relative again using the lien as a possible down payment because after you have the lien there's no way he can get rid of the house without giving you your money first.
There's a company that allows you to utilize a private financier to purchase the property (leveraging from their excellent credit) and make arrangements to have the mortgage payments automatically deducted from your account. I don't know if I can mention the business name on this board though. Do a search on yahoo or gooogle for
use my credit
I'm not recommending anything but its an option.