I've seen this home... and it will not go FHA 203(b) - You will need to do and FHA 203K (Rehab Loan) for this one, and it needs some pretty serious work... but... the project IS WORTH IT! The comps are great and I think you can buy the home for a song!
I have just the lender and I have just the contractors you would need to get this one done right and without killing your pocketbook.
There are a few other financing programs you can consider as well... I have a couple of lenders I work with quite a bit that handle rehab, construction, and investment loans... Make your life a bit easier.
The Raintree neighborhood has a history of foundation issues and if this home does also, FHA will not insure it. It would be a cash sale and perhaps conventional if you put adown a sizable amount. If you are looking for a good value, contact me and we can talk about what and where I would reccomend.
You may consider getting pre-qualified for an FHA 203K loan. Some cash/conventional sellers can be educated about selling their property this way. I recommend speaking to a lender that has a lot of experience with that type of loan to get educated about the process before proceeding. Let me know if you need any help.
Troy Beck, GRI
Home Team of America