For Sale By Owner Dilemma

[Theresa Reynolds]

I have a house under contract, buying directly from the owner. In the contingencies we agreed that he would fix the roof if I am paying for the materials. However, the lender wants the roof fixed before closing as they don’t want to lend with the roof being in the shape it is. How do we arrange that so I’m not paying for the roof and then I’m put money in case something else goes wrong?

The loan officer gave me the other option of doing a purchase line of credit with a variable interest rate, as an alternative to finance the whole thing. What is my best option here?

Also the owner also has a student loan lien on the house. Is there anything I need to be looking out for?