HUD ..... Property Arraisal Repair question(s) ....

[Michael Dunn]

I found a house on the HUD website that I am interested in, and it does show that the house is IE ( Insured Escrow )

Under the  Property Arraisal Repair , it lists about ( $4,900 in repairs .... Replace damaged Exterior wood $1,00 , Plumbing/water supply NOT functional $400 ,  Paint/stain Exterior AS NEEDED  $300,  Repair Damaged Ceiling/Walls $400, Replace missing Flooring  $2,000 , Replace Hot Water Heater $800,  10% cushion $490 ..... So $5,390 + $490  ( for the 10% cushion ) = $5,880

My question then is ..... If I was to Purchase this Property as an Investor ( s putting 20% Down on the Listed price of $80,000 ), I would Also have to Have the $5,390 to Pay out my own pocket for the " Required " formentioned Repairs, for this property to pass , via " Liveable " conditions per FHA guidelines ?

The property was built around the Late 1970's to early 80's and everything ( from the Pictures I have looked at ) , sows that this house is all original .... Flooring, cabinets, countertops, etc.   So it is definitely Outdated . Might as well add on another $10,000 to update It

If I pay out of pocket the $5,390 for the " MANDATORY " repairs , is there a way for me to add on an additional $10,000 to this Loan to do the Updating to the property that I am wanting to have done ?

OR..... Will  I too have to pay out of my own pocket the additional$10,000 that is needed for these upgrades to the property, since I will be purchasing it as an Investor, and not as a O.O. ?

Thanks for everyone's help

[Greg H.]

The HUD PCR and Summary is just a guideline and it by no means accurate. For example, a water leak list as $1000 repair could be a $5 shut off valve

Your conventional appraisal should be an as-is appraisal but I say again check with your lender. No one here can give you an exact answer as to what your lender will require. I cannot stress enough to check with the lender regarding what I mentioned above as to this leads to many HUD homes not closing and investors losing their earnest money