25K Electrical Problem Just Before Closing

[Zane Lyons]

Hi all, reposting this in a different section for more perspectives.

I have an off-market property under contract for 400K in SLC, Utah that I was planning on house-hacking to friends while renovating. A problem arose when we discovered it was entirely knob-and-tube wiring in the upstairs. I am not able to insure the property except for an expensive fringe policy with the stipulation that I entirely rewire the upstairs within 25 days. I received bids from 3 different electricians and all were right around 20-25K for the work. I checked my numbers and even at 425K, it is still a pretty good deal, but the problem is I do not have an extra 25K liquid for the rewire within 25 days.

For whatever reason my lender says because the electrical affects the livability of the house, we couldn't just bump the purchase price to 425k and receive seller credits/concessions to do the repairs. Is this true with many lenders?

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What is the best way I can come up with 25,000 in a month? I have considered lowering my down payment (though am not certain I can), or maybe a 203K/Homestyle loan, or even hard money for the electrical+rehab budget – though I'm pretty sure this is not the best situation for that given I don't plan on selling and am not 100% sure ARV is enough for a cash-out. Any help would be sincerely appreciated as this has been quite a stressful first deal!