How am I supposed to buy a fixer upper when the lender has these requirements?

[sanketp]

With the market the way it is, I was considering purchasing a home that I would occupy for a few years, rent out when I get stationed elsewhere and then move back into when I get stationed back in the DC area. The best deals seem to the fixer-uppers and "as-is" that are increasingly available.

When I talked to the loan officer today, she said that the house had to be "100%", meaning that if the appraiser goes to the house and say that he says that the roof needs to be replaced (or something else needs to be done to the house). The lender would require those items be completed before closing on the house.

If the house is being sold as-is or the house is bank-owned and the owners aren't around, how is that supposed to work? I don't want to put any money into fixing the house until I have the keys in hand.

Did I misunderstand the loan officer or is something wrong here?

[jackdowson]

Hi,

I don't understand what is your exact issue.

Well, can buyers agent (http://www.buyersagent.net) help you?

[Richard A Hetzel]

Perhaps the bank will entertain a construction loan to finance the improvements, which will be converted to a permanent mortgage upon completion of the work. Also, shop around among banks. Don't just deal with the bank, deal with several banks until you find one willing to work with you. After the mortgage issues of the past few years, they are all likely to be a little bit hissy, but shop around. It can't hurt.

Going into the bank with a written business plan can't hurt either.

[Rich]

Maybe I'm just pessemistic.. but sank and jack seem like spammers.