Need help- appraisal came back as C-5

[Nina Ibrahimbegovic]

Hello everyone, I am under contract for a HUD property and the appraisal came back as C-5 (not financeable). Since this is a HUD property they won't do any repairs. Does anyone have any advice for me please.. getting a conventional loan. I believe the appraiser was biased, the house needed a real good cleaning to be habitable, but it definitely wasn't a C-5. Had new Roof. Appraiser said no functional or external inadequacies were noted. No updates in 15 years. Subject was in overall average to fail conditions. The floors were stained and cracked. The utilities were not turned on for time of inspection (lender said utilities did not need to be turned on). Multiple baseboards are missing. Stains on the ceilings (obviously HUD replaced the roof before it put it on the market, but they’re not going to repaint it). There is a crack in the block (this was settling which inspector said is normal). What do I do ? Is there anything I can do except get a Reno loan? We are doing a conventional loan now.

[Greg H.]

Typical issue with HUD homes. Hud does no repairs prior to listing so they absolutely did not replace the roof. If a roof leaks, hud tarps it

Hud will absolutely not do any repairs nor will you be allowed to prior to closing(doing so is a Federal offense)

I would suggest finding a lender that will allow an as-is appraisal with no utilities as you are no doubt past the allowable period to turn on utilities. Other Opr would be your local credit union or a hard money lender

Or you can let it go back on the market and buy it from someone like me after I buy it from HUD at a discount. :)