Dear Kate, Each HUD home will state whether it is insurable or not. If it is insurable and there are minor repairs needed they may qualify for a FHA insurable loan, you may be able to get the 203K. You must be pre qualified prior to making a bid. All bids are review daily after the first 7 day period of owner occupant bids are over. You must work with a HUD approved agent in order to submit your bid. You buy as it.....and as an investor your deposit may be nonrefundable if you change your mind.....so you need to study up and have your ducks in a row.....if you need any help, My company list all the HUD homes in the St Tammany area, I would be happy to help. Cheryl

You appear to be asking about a construction loan. This is how they currently work, using an example below:
1) Say the house cost you $100K,
2) When renovated the house is worth $150K
3) The bank will currently lend you 60 to 70% of the $150K
4) They may require a 10 to 20 % downpayment
5) You will have to get builders risk insurance which can be more than regular insurance, in addition to flood insurance
6) So once you get done paying all the downpayment and fees, and closing costs you will need on a $150K house at least $20,000 cash at closing.

The days for buying, fixing and flipping are pretty much over unless you have alot of cash on hand, and can move from one property to another immediately.

...then there is the issue/time factor you have to throw in for rentals..these days it will take you a good 2 to 3 months to get decent tenants...those that pay on time and do not trash your place. Gettting such tenants requires time, patience and having that gut feeling to know good from bad.

Foreclosure properties work on late night TV....with all the deals in the marketplace right now, it would be prudent to avoid the risks associated with someone who abandoned their property and stick to a completed building.

check with the area lenders they would be able to answer your question better, but you could also go to the area banks and credit unions. If I were you I would also check around and see if there are any goverment rehab programs for investors. good luck

Keep in mind HUD looks at owner occupied buyers before they consider investor offers

There are lots of ways to fund that deal. FHA with the 203K (for rehab) loans, some convential lenders will also lend for the acquisition and rehab--provided you purchase one of THIEIR REOs. However, since you mentioned it's a HUD home, then you'll need to check around to see if there are any conventional lenders willing to do that. You could also go with hard money for the acquisition and rehab.