@Jennifer, A 203b is a standard FHA loan, that wouldn't be allowed on a property that needed more than 5k in repairs or needed structural/foundation repair.
@Cindy, nice job on getting educated on the benefitsof rehab lending.
@Phil, feel free to call me if you'd like a primer on rehab lending.
If the property says "cash only" they usually won't accept financed offers although from time to time they do if you're making an offer with a rehab loan.
Post additional questions here or feel free to contact me via my profile/website.
Many others, especially here in Tulsa, also "feel your pain.". Banks do NOT want to loan money on these often-distressed properties so you have to have your own cash, find an investor, or sit on the sidelines.
But there are some solutions to get either an FHA loan (strict guidelines) or even a Conventional (20% down required) but it will take patience and the right Agent.
First, INVESTIGATE every new foreclosure that goes ACTIVE. You may be surprised that some are in good, sometimes better than good, condition. I bought 10 myself in TULSA over the past 18 months and I would say 2 or 3 would have been approved by FHA standards.
Second, make the program work for you. About half of Fannie Mae and Freddie Mac (Homepath and Homesteps respectively) have their own financing for mortgages where you can even factor repairs into the loan. HUD has its own version, too. You will still need good credit, employment etc. But it brings those GREAT deals within the grasp of more of mainstream America. Contact me here in Tulsa you have any questions, OK?
Best of Luck!
Some listings are listed as cash only sales, unfortanately unless you have cash, the banks will not consider any offers with a financing or inspection contingincy.
Please see my blog with a full list of tips and advice for buying bank owned homes.