USAA will not finance until repairs are made!?!

[Stephanie Foret]

Ok so my husband and I are about to purchase our first rental house. We were supposed to close on 06/10/2013. The appraiser gave an after repairs are made price I'm not sure if this makes a difference or not. We just got a call from USAA telling us that they will not approve the loan until all of the repairs have been made and e-mailed the list. I can understand code violations or things that would cause harm or injury to someone but cosmetic things are also on the list. Why would they require this? Does anyone know a way around it with out loosing our deposit we have to the bank? Or does anyone have any advis in general? USAA told us that the seller should fix the property and then renegoiate, but the current owners want to sell as is.

[Peter M.]

Another thing you need to take into account is that they will also not insure the property unless any previous insurance claims are fixed. I realize this does not apply to your particular situation but its good to know if you get financing somewhere else and the unit you buy has issues.

I had this problem with the 4-plex I bought. There were also vacancy issues. I had to get a policy through State Farm for a year until the repairs were made but once it was done, I was able to switch to USAA and my premium dropped in half!

I absolutely love USAA and will always use them in some capacity. Like Daniel said, their customer service is the best but they stick to their guns when it comes to their policies. I'd say if you can't get it financed through them go to a small bank in your city that you can actually sit and talk with the loan officer, make the repairs, get it rented, and then refinance/insure with USAA. Good luck