FSBO financing Dilemma

[Theresa Reynolds]

HELP! Got my first deal under contract. Off market SFH property FSBO. Decided to go conventional however it won't qualify as the roof needs to be redone.

In the contingencies the owner and I negotiated that he will provide the labor for the roof and I will pay for materials. However, now it needs to be done before the appraisal and the seller currently doesn’t have the funds to do it. How can I handle this without being screwed over? Change the contract?

The loan officer suggested a purchase line of credit with a variable interest rate and interest payments only to finance it. Is it better to get hard money at this point and then refinance?

Also they have a student loan lien on the property. Is there anything I need to watch out for?