Its call a Renovation Loan, In that you would purchase the home base on the appraised value of the property and similar property in area including the renovation cost. i.e the home will appraised for $200,000 after renovation your are purchasing it for $170,000 you will end up with a Mortgage of $200,000-10% down payment minimum. ($180,000) with $30,000 held in escrow to pay the contractors when their work is completed or at various stage of the project.
I would be delighted to provide you with some mortgage options, this does not require us pulling your credit and will allow you to make the best decision for your family. I can be contacted for a FREE no obligation consultation.