Funding a deal that doesn’t qualify for Fannie Mae, FHA, or VA

[Evan Goff]

I found a 5 acre property with a 4bd 2b modular home and was able to talk the seller down to what she owes on it, $187,000. It's actual value is around $275,000. I am attempting to use a VA loan to take advantage of its 100% financing. Everything was going fine until the VA appraiser found that the house is still on its steel frame. He stated that unless the frame is removed and the home is put on a permanent foundation it does not qualify for Fannie Mae, FHA, or VA. The engineering inspector agrees with him. Now my options are 1) try and get the seller to put it on a foundation (she is a little old lady who doesn't have any extra cash lying around), 2) find a creative financing solution, 3) or let it go. I'm looking for advice on the second option but I am prepared to walk away if need be. Thanks