Primarily its ability or in ability to pass certain inspection criteria. In general, Homepath follows FHA inspection criteria so things like lack of flooring, old roofs, exposed wiring etc. would warrant a renovation loan. a similar loan product is the FHA 203k.
For more information you can visit http://www.homepath.com. I have worked with many Homepath homes and would be happy help you in any way.
Jennifer De Vivo
The De Vivo Team
As per the name, the listing agent has determined that significant work will be required to bring the property to normal living conditions and therefore homepath will approve a renovation home in that property. They will provide more money on the loan than the purchase price, so that you can renovate before moving in. There might be restrictions as to how many years you must live in it before you can resale.
Charles Rutenberg Realty