Check into the 203k loans. Not as many lenders are willing to do these loans, but below is a link to a website for a lender that does(I found them on the HUD approved lender list). They have helped a few of my buyers in the past.

David, definately check into a 203 loan. They are FHA based but you can wrap up all repairs wanted and needed right into your loan - Check with your lender. Not all lenders do these loans so I would suggest choosing a lender that KNOWS these loans and has done several of them. There can be problems if you do not find an experienced loan officer that knows these loans.

If you are using a Realtor, which I would highly suggest on a bank owned (most banks list their homes w/ Realtors) - make sure that realtor knows those loans too. Many of us have experience but the majority of realtors may not. That realtor will also be able to direct you to a good lender that has this program available.

These loans were specifically designed for these type homes - It's a great loan program. There are 2 types of these loans: a streamline (easiest) for all repairs except structural repairs. If it needs structural repairs than it has to go with the conventional 203 loan (more complex and takes a little longer to close).

Good Luck - If you need pointed in the right direction for a Realtor in your area, feel free to email or call me and we can find a good one for you.

Check into the FHA 203k, which allows for fixups to be factored in!

Good luck!

Art Hotes
RE/MAX Classic