Do you know about the programs for first time home buyers?
My favorite is the usda rural dev.guaranteed loan.(its like HUD but for rural areas with catchment water).You get A paper rates but must have a credit score of at least 620.(beacon)
Since the loan is guaranteed and the bank has nothing to lose they will over appraise it to help with closing costs (and properties that have unpermitted parts with higher prices than appraisal).zero down kinda program.
Its been my experience that bankers/brokers don't like to tell people about these programs unless you make them and then they still hem and hall because its more paper work and maybe less commissions.
Try local banks like American Savings,Bank of HI. instead of mortgage companies their rates /points are lower and they have more programs/options.
Another option for a construction fallout loan is Bismark mortgage (look online)but you only have 6-9 months to finish construction and refinance.
The first step for 1st timers is to find a lender you like or narrow it down to a couple don't give out your social security numbers until you find one u like then once they pull a credit report u have 2 weeks to run reports with other lenders,after that your credit score will go down if there are any more checks on it.Once you find a lender or two your going with, ask them about the properties your interested in they will be able to tell you what will fly or not.(always get a second opinion too some places will some won't)
Totally unpermitted/unfinaled properties are hard to get financed unless its "owner financed" or the price is comparable to raw land but then you'll propably have to get a construction loan and put up another house altogether but in the end you'll have a rental unit!
Good luck there are great deals out there if you keep on top of it or heck just make your own great deal if you can't find one.
Its a great time to buy and interest rates are falling!!!!!yeah!
If you get a good lender and a good real estate agent all you have to do is look at properties (the fun part) and read an sign documents.
P.S. Don't let anyone talk you into anything but a fixed rate mortgage!(about 6% or less right now for a 620 or above score).
Happy Hunting
