Can I buy a home all cash and get a renovation loan if it’s condemned?
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Can I buy a home all cash and get a renovation loan if it’s condemned?
I live in Nj. This would be my first home.
Can I buy a house listed for 45,000 all cash
and get a loan for renovations? The selling
realtor said it is condemned due to its
foundation. Can I get a loan to fix the
foundation and re-do the kitchen? The rest of
the house needs some cosmetic work that I can
do over time. My credit is at a 650.
Asked on March 23, 2017 under Real Estate Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Legally, you can get a loan for renovations on a condemmed property--that's how many condemmed or otherwise distressed properties get rehabilitated. But legally being able to get a loan does not in fact guarantee you will get one: lenders are not required to lend, and can decide who to lend to, how much, why, and under what terms. You should speak to several bankers and mortgage brokers before buying--even though you are planning on paying cash the home itself, and even though their informal opinions are not binding, get a sense for how easily you can get a loan for the home and purpose you envision, and under what terms, before putting your money down.
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