I am looking to purchase my family house. Recently my parents had a divorce. They purchased the house in 1997 under just my fathers name. Even though that is the case the judge had order him to pay $20,000 over to my mom to settle. Along with this he hasn't been paying his taxes so he owes $15,000 in taxes with several liens on the house because of this. He isn't in danger of losing the home because I am making sure the liens are paid off when they come up with a final date. The house is in bad shape, it is livable, but virtually no maintenance has been done since the property was purchased.
The house tax value is $160,000, the house would probably appraise between 70k-120k today and would go anywhere from 190-225k when completely rehabbed. My father has agreed that he will sell the house to me for 50k. This would cover 20k for my mother, and 15k for the taxes and giving him additional cash to get himself a used car or whatever else.
I want to make this purchase but definitely need to get my ducks in a row to determine my best course of action to immediately start a rehabilitation so that it is back in great shape. I've been spending the last few days looking into all my options for loans. Previous to this opportunity I was house hunting and have been approved for 180k-200k so I know I can afford it.
I'm willing to put up to 100k to bring a total loan value up to 150k.
Some of the improvements that need to be done:
* New Roof
* New Kitchen
* New Flooring Everywhere
* New Heating System (Currently has a wood stove with oil heating system that doesnt function properly)
* New Sheetrock where needed, and paint
Beyond that I would love to add a new deck, pave the driveway, and finish the basement… but thats only after everything else is done. I've looked into a few different types of loan but the only one that I can see that will work for me is 203k unless someone else can give me some advice in my situation to make this work. The house is in the middle of New Hampshire and it is very difficult to find a 203k Contractor so far and i've reached out to multiple GC. I feel like it might just be easier to just buy the house at 50k and find other lines of credit, and loan types to supplement my on-hand cash to slowly get the house back together. Is there any type of loan where I can buy the house at 50k, with the loan amount of roughly 125-150k? So that this cash is on-hand for contractors rather than jumping through 203k hoops? Does anyone have some advice in this situation?
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