Mortgage broker cant pull of what we agreed upon now im stuck.

[Orlando Hernandez]

Help please, im not sure what best route moving forward is. (Sorry its a bit long)

Situation:

In September I took possession of my father in laws second house. The house was in poor condition. (He Was dropped from insurance company due to this & has the banks insurance now)

I knew I couldn't get conventional financing with it in this condition. I decided to pay his monthly mortgage payments and renovate the property, so I could use the equity appreciation in the buying process.

•He wants what he owes 46k

•Renovations and holding cost 15k. 98% complete (My personal $ invested)

• $800 montly payment ( $200 of it due to crazy overpriced insurance)

• ARV. $85k

My Mortgage broker Ran credit signed all documents and we agreed to structure it like this.

Loan $64,500 total

25% equity would be left in property

Interest rate 3.0% (Cost $1300 in points)

8k closing cost. Paid by seller thru his equity

10k cash back (gift from seller thru properties equity)

☆Over the last few days. This deal has fell apart.

He told me he cannot find a lender willing to do the deal with my funds all being a gift of equity. As far as the bank is concerned I have no money in the deal.

He said pre coronavirus this would be no problem but with no Evictions possible right now in NJ. The bank will not take the risk. And assumes if the renters stops paying that I will not make the payments.

Broker said id have to pay full 25% down payment and closing cost. Almost 30k Which I do not have.

I'm trying to finance it as an investment property due to I already live in a duplex that I house hack. Which I refinanced in March.

I'm ok with leaving my 16k in the property for now and now pulling any $ out. But I want to take advantage of this market now.

My father in law would keep it in his name as long as needed. And will help anyway that is not financial.

Father in law does not want to be responsible for claiming rental income on his taxes.

● WHAT ARE MY OPTIONS HERE?

Thank you for any help/suggestions.