Buying with an FHA , But...... Buyer and Seller agree to certain conditions?

[Michael Dunn]

This coming Monday is going to be a big day for me , as far as getting close to a " For Certain " on the property I have been pursuing for some time now

There are a few things that I wanted to ask BP members , and get there feedback on , to kinda prepare myself for what may come from the Property

Here are my main questions/concerns:

1. I'm going to go with an FHA loan, and do away with going with a 203K . The seller and myself have both agreed to sell the house " As Is " . The property is distressed and does need some extensive repairs ( roof, flooring, paint, appliances, etc. )

I was told that by avoiding adding on the 203K to the loan, that I can 1. Do the work myself ( since I will now own it , in it's " As Is " condition )   2. That the buyer and seller can come up with a mutual agreement on how much time to give me ( the buyer ) to have certain repairs completed.... say 3 - 4 months from the day we close ?

2. Will the Lender give me a loan on a property that is distressed and is in need of repairs, even if those repairs are going to be done by the buyer , and also that they are completed within a reasonable time frame ?

3.  The roof on this property will need a roof within a year.

But since I am not going to use the 203K loan .... is there a way that I can get an additional $5,000 - $10,000 from the Lender , solely for certain repairs . Like a 2nd mortgage ? Or in an Escrow?

I'm just wondering if they would do this, since I'm the one who will be doing nearly all of the repair work ( I have 12 years experience in the contracting business ).  So maybe this will help me in getting an amount that exceeds what the house appraises for  ........ Purchase price for the property as it sits = $57,000  +  $10,000 for repairs = a Loan of $67,000

But, this assumes that the house only appraises for $57,000

I know that for a house between $50,000 -  $80,000 ,  can only get a Max of $10,000 for repairs added to the loan using a 203K.   But that with a 203k , you HAVE TO have all of the repairs completed by a Licensed Contractor..... and this is what I'm trying to get around, by being able to do the work myself .

Even if I did the 203K , the repairs that will Likely be required by the Lender to be completed will be $5,000 - $10,000 over this amount. Of which I'd have to pay the difference out of my own pocket, of which I Don't have

Thank you for the help. I'm a bit confused on how my situation will likely play out , and am trying to educate myself on the subject before Monday gets here  :)

Thanks - Michael