I want to buy a home with no money down but would need additional money from the loan to make it livable?

I am a single parent in Minnesota with a steady full-time job but mediocre credit (thanks to the ex)



The only house in my area I can afford needs all new flooring, paint and drywall repairs. How can I get a loan for 10K more than the purchase price so that I can fix it up to live in?I want to buy a home with no money down but would need additional money from the loan to make it livable?
You will need to now if the home will appraise for more. Lets say they want 80k but it'll appraise for 90k. Offer 90k and ask for 10k back from the seller at closing. This is really the only way to get that money back.I want to buy a home with no money down but would need additional money from the loan to make it livable?
You are way over your head! How do you expect to pay all that off? You better get saving instead of getting more loans!
Some lenders will give you more than the purchase price. However, they will want to see good credit. Why? Because the extra is unsecured. If you fail to pay, they'll take your house but still be stuck for the extra $10K.



As it is, a 100% loan will require (typically) PMI payments.



Best thing to do is try to find SOMETHING that's a little cheaper. You say the ONLY thing in your price range? While I don't know your local market, I'd think that there would have to be something that works for less. A condo? A townhouse?



Or, keep renting for a bit longer, until you can save up.



Or, find another way to get the loan.
A realtor told me that if you are a first time homeowner, there is a program for that. Talk to a realtor about it.
Not sure if Minnesota has such a plan, but my sister got a WHEDA (Wisconsin) loan for a home and then an additional $10K loan to fix it up. There were a few rules and regs, but it worked for her.



You can try here http://www.mhfa.state.mn.us/homes/MMP.ht鈥?/a> and see if you can get what you need.
You can't borrow 110% of the home's value that I'm aware of, and with ZERO equity, you can't get an improvement loan without PERFECT credit. That's what I was told anyway (my credit is fine -- not perfect -- and I recently bought my house through a local bank for 0 down).



Here's how I got around it. The government encourages you to make certain improvements to your house if you live in a re-development area. Every bank must make available these loans -- they are called CRA loans -- Community Reinvestment Act. Find out if your house is in a redevelpment area (go to your bank and ask). Turns out my house was, and my bank loaned me $10,000 at 6.5% fixed for 7 years. It was just enough to re-do my bathroom and fireplace hearth.
You shouldn't need a loan for paint and drywall repairs. Those are simple things that you can learn to do yourself and and the cost of materials is not that much. Drywall is particularly easy if you can find someone who sort of knows what they're doing to help you. My advice is to just buy the house, move in, and just work on it as you can afford to. The important first step is BUYING THE HOUSE. See if Home Depot or somebody offers do-it-yourself workshops.
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And I want a million dollars in my bed when I get home!