Anything can be repaired, but the dirt under the home will not change. When you say serious foundation problems, that raises a big red flag. No matter how much foundation work is done, the likelihood that you may have more work to be done down the line is pretty good. You may want to reconsider this home choice and look for a home with less issues, at least not major foundation issues. There are so many homes on the market now and great deals to be had. It may pay off for you in the near future to not have to deal with ongoing foundation problems. However, if you think this home is the one for you, then I agree that an FHA product called the 203K is just about the only route to take besides paying cash. With the 203K, you loan amount will be over the sales price by the amount of repairs needed. You will be paying for the repairs in your loan payment.