Appraisal Advice Needed Please

[Young&Restless]

First I wanted to say what a great site this is.  It has helped me to get to the point where I'm at now, which is buying my first property.   Here is what I have... An REO that will cost $35,000.  Repairs to bring the house back to standard with the neighborhood would cost less than $4000.  The comps ran by my realtors show that houses in the neighborhood with similar sq footage are being sold for 70-80,000.   My plan was to get a loan from a finance company, however I would need to get an appraisal on the house.  My realtor said that a low appraisal now would hurt me when fix it and turn around and sell it in a month.  She said that the buyers would get an appraisal when I sell it and it would be low because of the first low appraisal that will be held in a database.  It has happened to her before.  

1) Is there any way I can get a loan for the 35,000 without an appraisal? (Btw, I am 22 with no job, no assets of any value, in a new town, and have no rich friends, relatives, I don't even have a doctor so I havent found any Private funds and cant get a loan secured by other assets)

This is the final roadblock in the buying process that I have come across.  I've gotten around all the others and so I know there has to be a way around this one.  

2) Has anyone else run across this problem ever before or am I worried about nothing?

Thank you so much for reading this and any input you give will be greatly appreciated

[kbrandau]

Depending on the lender's requirements you may be able to avoid having the house appraised.

But an appraisal helps the mortgage companies avoid risky properties.  

Depending on the lender you are using, will depend on their individual appraisal requirements.  If they know that the house will be worth.

Being 22 y.o.a. and no job, I find it hard to believe that you'll qualify for a mortgage on the property, how are you going to make the payments?  How are you going to pay for the repairs?  I'm not trying to get into your business, but when you fill out the Uniform Loan Application for a mortgage, there's allot of personal questions that must be answered truthfully, because your entire life will be looked into, verification of employment, or must have two year tax returns showing self employment income, plus you must present the last two months worth of pay stubs.

Or you could go to the hard money lenders, and pay the huge interest rates, in the hopes that you could flip the property rather fast.  Or if you could locate another investor with money, and you do the labor on the fix ups, and split the profits...

Just my thoughts....

Good Luck!

Kirk