Profile picture for AshlynNorris

Rehab loan question

My husband and I are interested in buying a rehab home, then fixing it up for our adult child and family to live in. Since it will not be our primary home, I don't think we can qualify for a 203k loan. It is listed as a cash only or rehab loan. What is the best way to finance the home? Because it is a rehab, I am thinking we can't even qualify for a traditional loan. When our familyis ready to buy their own home, we plan to turn it into a rental property. Any ideas would be appreciated.
  • June 10 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

Profile picture for Connie Klemme

conventional loans typically will work with homes in those condition, but the lender will most likely want 20% down and since you said " I am thinking we can't even qualify for a traditional loan" then this might not be an option.  If you are just thinking that because of the condition and do have the 20% to put down then talk to a lender.

I have not known of anyone getting an FHA loan even on a property in good condition if they aren't going to occupy as their primary residence.  That is really the problem.  Perhaps your son can qualify with assistance from you?

  • June 10 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

There are a number of options available in Oklahoma; you don't say where you are. There are second home, and investment home loans that are "rehab" type...some with as little as 5% down payment. I have a client that is doing a conventional rehab loan through Quicken.

Homepath renovation financing is attractive and available for second homes and investor homes: Homepath Renovation
  • June 10 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

Even considering all of the information that you can find online these days - I would still recommend first and foremost sitting down with a lender and going over all of your options. A great lender will be very accommodating in explaining everything to you and answering any questions about the different avenues to this type of home ownership. Good luck!
  • June 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.