Complex financing/refinancing questionTrying to buy an REO property. I am veteran, pre-approved to $215K. Current income is $70K, stable employment, credit scores in the 670's and have about $5K on hand. The bank that foreclosed on it for $343K in 2010 went out of business in 2012. It has been listed by the current bank for about 120 days at $210K. Tax assessment is $415K, zoned CLD. During foreclosure, 2 houses on 2 parcels totaling 4 acres were combined into one. The "good" house will be my residence, and will have no problem passing the VA inspection. The other house can be re-habbed, but is not livable now. My hope is to renovate it later for use by my parents when they are no longer able to live alone, which I don't foresee for another 5-10 years.The problem is the VA: one house on one parcel. My current offer is $210K and they subdivide off the "bad" house with a minimal amount of land, I get a VA mortgage on the good house, and then they gift me the "bad" house at closing. We have talked to a wealthy friend who may try to buy it from the bank as a cash buyer, and we buy it from him. But that's the least desirable option.Any other ideas? Is a commercial mortgage an option with (1) little cash on hand and (2) no business use? Or a USDA mortgage? It is in a USDA approved area, and my income just falls under the maximum for our county.August 18 2013 - Southport0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.