I agree with Robert on all fronts. If by chance this is a potential investment for you, then there is also money available, up to 65% of the market value, once the home is fixed up. This is one year financing and is intended to help investors who do not have their own funds, to still be able to invest in the Real Estate market.

If you are unsure if the information that you are getting from your loan office is correct, you have the right to get a second opinion. You can seek the consult from any reputable loan professional.

With that said, I'm not sure I have enough information to offer much insight on the subject. A lot has to do with the type of loan your seeking and if you qualify without your husband on the loan. Seems strange that in one household you have one spouse trying to finance the purchase of one home while the other is doing a loan modification on another home. But without all the facts, I can't say one way or another if that precludes you from what you are trying to do.

If the house has structural issues, it will be very difficult to get a loan. If the structure is fine, but the damage can be corrected to living standard with certain light construction, and if you qualify for an FHA insured loan, you may want to look into an FHA 203(K) construction loan. It's designed to allow you to purchase a property that is not up to FHA standards by getting a loan that pays for the repairs and then gets wrapped into the final purchase money loan. Of course, the property will need to be purchased far enough below market value to have room for the loan.

Talk to your loan officer about that and see what he/she has to say, since he/she should have all the details about your situation, he/she can explain how it may (or may not) apply for you.

Good luck.