If you buy a house that requires extensive repairs then most likely the appraisal report will indicate repairs that must be completed before closing can take place. In such cases you should seek 203K financing or FNMA homepath financing to start with as these loans offer a one closing solution where you get mortgage money to buy and renovate. If the house you are buying only has cosmetic work with no required work mentioned in the appraisal report then you could buy with the normal loan and have a contractor finance the work. Many contractors in your area will probably offer this but you should do extensive checking with the consumer affairs department before hiring one. Contractor will most certainly put a mechanics lien on your house until the loan that he extends is paid off.
Good Luck!... more