Yes, it's true, a 203k loan requires the CO to be in place and have been in place for one year before rehab financing can be used.
Your only other standard option is a HomeStyle loan and most lenders will have the same requirement (the CO) as well.
The only way to close on a home like this for sure is with a true construction-rehab loan which will be a portfolio lending product (local or maybe regional bank or credit union). Lenders right now don't have much of an appetite for construction lending which is why you see so little of it and also why you'll see so few new homes outside of a major development. Keep in mind I'm not saying construction loans aren't out there, "construction-rehab" is the part that'll be the challenge to find and some lenders who offer these products have minimum loan amounts as they want to minimize their exposure since the majority of the construction was done outside of their control.
Good luck! If you need additional information on rehab lending, I have many posts about it, just look through the Q&A or my blog(s).
Wells Fargo is one of the most trusted lender and we at prudential rubloff have had an opportunity to work with them. They provide and excellent 203k loan program which addresses to your specific needs of remodeling your property. , which is the loan to purchase & rehab your property. I also specialize in short sales. Feel free to call me for properties that are available for sale.
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Keith Ulbrich @ Well Fargo
The FHA Streamline 203K or FHA Full 203K loan programs (depending on the amount of repairs needed) will probably be your best bet, but you'll want to make sure the seller has a C/O or Certificate of Occupancy in place on the property. This can be a roadblock on a 203K mortgage.
I'd be happy to help you or answer more questions that you may have. I'm reachable via email (firstname.lastname@example.org) or phone (773.456.9662) at your convenience.
I work with a few lenders that can facilitate the 203k loan, which is the loan to purchase & rehab the home. I also specialize in short sales. Feel free to call me for properties that are available for sale.
Evelyn S. Fred
There are a couple loans which may be of great use for you.
The first is the FHA 203K which is for owner occupied only.
This loan gives you the money to purchase it as well as the money to rehab.
The other is the Fannie Mae Homestyle. This is for either owner occupied or investors.
The biggest difference is that the Homestyle requires a more substancial down payment.
Feel free to call me if you have any further questions or how to get pre-approved.
Ardain Mortgage corp
Senior Loan Originator