Can you help me figure out financing for a cheap home I like.

By on February 3rd, 2010

Hello, I’m 21 and reeeeally am feeling the want to move out of my parents’ home. I’ve put a lot of thought into it.

I have my eye on a foreclosed home. It’s in a moderate area of a very very nice city. It’s listed for $34,000.
It has had its kitchen cabinets torn out, the bathroom vanity torn out, and there is a medium sized (old) water damaged spot on a ceiling (no knowledge yet where it came from). It is marked uninhabitable by the city with these things listed. Assuming these are the worst of it’s problems, I am interested in buying it.

I am curious if I would be able to finance this home. It seems like a pretty complicated problem. The other day, I sat down with a mortgage broker at my bank. We talked a while, and he said he would have no problem giving me a mortgage for a home costing $34,000. I am an A+ client he said, he might have to “override the system” though.

We didn’t go into specifics about the home. they have no financing options for uninhabitable homes. Please give me some advice.

I have $15,000 saved.
I have a 754 credit score (not much credit history).
I have no debt and only $150/month for car and cell.
I want to put down $6,800 (20%). Not counting closing fees.
I want to have at least $10,000 to put into the home (Will do most work myself and with dad’s help).
I need an interest rate of 6.2% or less- nothing crazy please.
Willing to do 30 year mortgage over 15.

I have another problem. I have only about $525 a month in documented income. (Undocumented I also bring in around $1000- nannying. I know this doesn’t matter.)

I’ve read a bit about the 203K rehab loan. is there any way I can take advantage of this.

Can you come up with any solutions for my problem.

I would LOVE to hear your ideas. Thanks.