Actually there is a great conventional rehabilitation loan product out there; better known as the Fannie Mae HomeStyle. I highly prefer the HomeStyle to 203(k)'s only because you have more options and wouldn't necessarily have to pay mortgage insurance; even if you're above 80% loan-to-value.
You're allowed to make just about any repairs / renovations and you can utilize this program on all residential properties including your Primary, 2nd home, or Investment property. There are a lot of details we should discuss as there are necessary steps that must be taken properly. If you'd like to find out more and determine the absolute best way to structure your mortgage for success please contact me at your earliest convenience.
Paul F. Marzolla
Sr. Mortgage Consultant