You can also obtain a conventional renovation loan, if there is not enough Equity or the property condition will not allow financing. With no lien you have options. Do you have to buy out any other heirs?
For a veteran and possible USDA outside of that I would be suspect!
Investor Renovation financing is alive and well! You need to be realistic about what you will qualify and what you will need in terms of a down payment. As an investor you will need 20-25% of the acquisition costs (Purchase + Renovation Cost). If you are looking for lower down payments investor options are much smaller if not non existent. No doubt your credit profile will have a big impact on availability of loan options. The programs I am aware off require credit scores at 680 or above.
"Generally 10 percent of your discretionary income, but never more than the 10-year Standard Repayment Plan amount" I got this from this site: https://studentaid.ed.gov/repay-loans/understand/plans/income-driven Document the payment on the 10 year standard repayment plan and you should be good to go, or at least the loan officer should be able to explain to the powers to be that the documentation is for the highest possible payment.
If the payment is not the issue, don't get hung up on documenting the lowest or actual projected payment. Document worst case scenario, as if your income exceeded the max. what is the highest monthly payment you could have if by some miracle you became the highest paid person in the world? I am sure it's not a balloon payment, it likely will have a cap on the monthly payment. What is the cap based on what you owe?
Regardless of the lender they will have to debt you something for the student loans. What is the problem? Documenting the potential payment or carrying the additional debt?
The answer will vary with Lender overlays as well as the product (FHA, Conventional or Non-Conforming)Conventional guidelines per Fannie Mae:Fannie Mae requires that all deferred installment debt, including student loans not yet in repayment, be included in the calculation of the borrower's debt-to-income ratio. In determining the payment for deferred student loans, Fannie Mae currently requires that the lender obtain a copy of the borrower's payment letter or forbearance agreement or calculate the monthly payment at 2% of the balance of the student loan. Research has shown that actual monthly payments are typically lower than 2%. In addition, many student loan repayment structures now use an income-based approach in calculating changes in the payment due over time.As a result, Fannie Mae is modifying the monthly payment calculation from 2% to 1% of the outstanding balance. In addition, for all student loans, regardless of their payment status, the lender must use the greater of the 1% calculation or the actual documented payment. An exception will be allowed to use the actual documented payment if it will fully amortize the loan over its term with no payment adjustments.
How could servicing be more helpful?
Making repairs to a property you don't own is a mistake. No way around it.
Vince as an appraiser you should know lenders cannot be forgiving on an appraised value! The only way they can order a new appraisal is if they find enough wrong with the inititial appraisal to defend ordering a 2nd.