If you have a large down payment you should have little problem getting a loan. Your large down payment would be a cushion against the value of the property in its poor condition. The down payment would have to be at least 20%. You would, of course, need to qualify in regard to sufficient income, debt ratios and credit score.
If your down payment is less than 20% the likelihood of a loan approval grows smaller as the down payment shrinks. With a standard FHA (3.5% down payment) the likelihood is zero.
An exception is the FHA 203k program in which the lender lends to money to buy the house in its present condition along with additional funds to fix the house up. That is a much abbreviated summary of the workings of a 203k loan which is complicated and more expensive than a regular FHA loan. Butâ€¦if that is what it takes to get you the house you want maybe that is the way you should go.
The is also the HomePath program from Fannie Mae but I will let your Realtor explain that one to you.
The lender will loan you up to $30k more than the purchase price for repairs. If there is more work to be done than that, you can receive more than the $30k, but you will need to have an appraisal done on future value (once all work is finished). The appraisal will need to include an architect's plans, licensed contractor's estimate complete with all the materials to be utilized.
In short, not an easy task for over $30k, but it can be done!
Email me if you would like more information. I am located in Fremont and Pleasanton.