Home sold AS IS v Rehab loan

Home Forums Purchase Program Home sold AS IS v Rehab loan

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  • #74232
    sweetlilly
    Participant

    Looking to make an offer on a home that seems to check all the boxes.
    However because of the hot sellers market, brazen demands by sellers appears to be the norm.
    This one is being “SOLD “AS IS” with Sellers making NO REPAIRS” Exact quote!!
    Assuming I move forward with this I still plan on having inspections done so as not to get myself into expensive surprises.

    The question I have is , if the home appraises and the amount i qualify for exceeds the cost of the home including any repairs , would i be able to get a rehab loan from HAND to do the repairs?

    Thanks for any feedback.

    #74233
    Nelsont
    Member

    Absolutely. This is exactly what a rehab loan is for.

    A rehab loan allows for 110% of the expected value of the house after renovations. So you would hire a contractor or architect depending on the extent of repairs needed.

    The blueprints will be submitted and approved by hand and the appraisal is done on the blueprints. Much like a new construction you get a “subject to” appraisal. Instant equity obviously because 50k in repairs can add 100k in value.

    You get 110% due to overages. Estimates quite often are under estimates.

    #74234
    sweetlilly
    Participant

    Thanks a lot for the feedback Nelson.
    Much appreciated.

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