Call with Lender in 4 hrs. from Now. Need some insight please....

[Michael Dunn]

I have a call with a Lender today in about 4 hrs. from now ,

and before that call , I wanted to run by a few things with fellow members , and get there advice and knowledge on some certain things I should Ask and or expect when I talk to the Lender.

1. As stated in previous posts, this Property I am wishing to purchase is a bit of an " Out of the Box property " , in that it is being sold via a Trust and my Mom is the Trustee of the Property ( conflict in selling between seller and buyer.... due to Family ties ) ?

2. The property is in a distressed state .... needs a new Roof, painted inside and out , some Electrical work is needed, needs new appliances , new water heater and new flooring ( these are the necessary and essential thins that need and will have to be done )

now it does need a new AC unit , BUT .... I am considering just putting in 3 window units vs buying a brand new unit.  There are many houses in the neighborhood that have AC units , and these houses sell and rent quite easily.  The houses were all built in the 40's and 50's

Well, the seller ( Mother/Trustee ) and the buyer ( myself ) , have agreed that she will sell and I will buy the property as it currently sits ( in it's current As-Is condition ). The question with this I have is ...... I will be using a Regular FHA loan to purchase the property , and am wondering what the Lender is likely to say and offer us as options on this agreement between the two of us ? Will the Lender " likely " give me a loan on the property, knowing the needed repairs that it needs, as long as ..... we put in the contract that I will make the necessary repairs in a timely manner ( within 3 - 4 months from the time we close ) ?

My dad and myself are both Contractors ( although neither of us are liscensed ) , But I am wondering if the Lender will allow us and trust us in getting the forementioned repairs completed, by allowing us to do the work ourselves ?

3.  I could do the deal as a 203K rehab, but the issue with this that I am concerned about are ..... I will be purchasing the property for whatever the appraised value of it is.... which is likely to be around $55,000 - $57,000

And I have heard that with a 203K ..... that you can only get an extra $10,000 for repairs if the property is within the $50,000 - $79,999 price range ?

4. I am assuming that if the Lender allows the seller and myself to purchase the property in it's As-In condition, with making NO repairs prior to closing..... that I will have to pay for the repairs out of my own Pocket ?

If this is so ..... Is there a way that I could get an " Added " $10,000 onto the Loan , that I can use to make some of these repairs?   Maybe as a 2nd mortgage ? Escrowed ?

Thank you so much for any help and advice ,

Really appreciate it