RON: If the seller is a Bank and owns the REO, most times they are not interested in doing repairs. They might however, offer you a credit for the repair to offset your closing costs which would result in you needing LESS cash to close escrow ... it would have the same affect as you takng cash back for the repair work. REO properties are usually "as is" but they (the bank owner) also usually would not want to risk losing a good buyer, so give it a shot, ... ask for the credit. The other poster mentioned a FHA 203(K) loan, these loans are for purchasing AND fixing up the property. It is almost like two loans in one. As a mortgage broker, I have two good lenders I use for these types of FHA loans. If you would like more information, please feel free to contact me.