Usda Loan On Foreclosure In Need Of A New Roof?
Here’s the story…
We are pre-approved for a USDA Rural Development loan up to 75K with no downpayment.
We fell in love with a foreclosed BIG old house, in almost perfect condition, but it needs a new roof. The roof itself isn’t bad, and there’s no water damage, but the saufets are rotting and need to be replaced. The bank who owns it will do NOTHING towards repairs, and we were told that we could fix the roof out of our own pockets, but if our financing fell through we would just be SOL.
The house was last appraised at 70K, but the current asking price is 55K. The cost of repairs would probably be around 10K, but we haven’t found out for sure yet.
My question is: What’s the chance of getting a loan with the intent to repair? I’ve heard that the USDA is very picky about the condition of the homes before they approve the loans, but I’ve also heard that they give home improvement loans.
How likely would it be that we could take out a loan up to the appraised value of the house (around 70), and put the extra 15K or so into the repairs the USDA people require? (especially since the value after the repairs would likely be much higher)
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