Consumption and Real Estate
What steps to take to obtain a lender for a house with mold?
Question : What steps to take to obtain a lender for a house with mold?
I’m looking to buy a house with mold (anyone who’s going to say “NO DON’T DO IT!” can go away right now) I’ve already had several specialists out to do inspections and they all said that it’s confined and can be removed. Luckily the area I want to have it removed from is an area I want to remodel 100% so I’ll be stripping & gutting down to the studs allowing 100% mitigation (I have a 100% removal warranty so again if you’re going to say anything along the lines of “it will never be gone” lets just pretend that I WANT to die of mold poisoning and move on….)
How do I obtain a lender for the house, what special things do I do? (does asking to put the cost of the mitigation into the loan make them feel better about it? etc.. etc..
What steps can I take to make this look better to a lender (planning on putting over 20% down as it is so..) What else?
mold inspection cost
Best answer:
Answer by Spock (rhp)
you’re right that this is going to be difficult — the easiest deal might be the current lender because he’s already got the problem even if he doesn’t know it.
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#2 written by Bob 1 year ago
The FHA 203K program is designed for purchasing homes in need of repair. You can find a lender in your area that offers the program on the HUD.gov website in the resources section under “Lender Locator”. You will need to submit a plan for your repairs to the lender for approval and they will disburse the proceeds as repairs are completed. For sure the lender will require you to document that the mold problem is contained and can be removed. Closing costs are a bit higher than a standard purchase loan due to the disbursements, but I assume you’ll be getting a good price for the home so it should be worth it.
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#3 written by Sharon T 1 year ago
You need to find a flexible lender. What you are looking for is akin to a construction or rehab loan, with permanent financing built into the plan. I’ve had the best luck with small local banks.
Unfortunately, this is a terrible time to be seeking such unless you have at least 20% down and very strong credit. There are so many houses to be financed that most lenders just won’t be bothered with one like yours.
Who owns it? If free and clear, ask for short-term owner financing to get your job done or put it on option for a year. If there is an existing mortgage, try to get that company or bank to make the loan. They already have exposure.
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