Trying to buy a foreclosure that is in need of upgrades. Can I get a mortgage, or does it always need to be cash?

Possibly, but more info needed.. For conforming financing (FHA, VA, USDA, Conventional) the home must be in "Habitable Condition".. meaning that if there are any property deficiencies that have to do with the health and safety of the occupants, then those deficiencies must be corrected prior to obtaining financing.. Broken windows, exposed electrical wires, leaking roof's, evidence of mold.. etc.. These are issues that would need to be fixed prior to financing.. So if there are no health/safety issues, then you can get regular financing, however if there are deficiencies, then you actually have 2 options.. FHA has the 203K rehabilitation loan where you can include repairs into the loan.. This must be a "Owner Occupied, Primary Residence" purchase.. and then conventional has a similar product, but the same residence restrictions apply, however, it has must less restrictions when it comes to what work can be done and and it has much lower fee's and costs.. it's called the HomeStyle Renovation loan.. To find out more about these loans, you should contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

The answer is "Yes", Josephine, although it may not be through a conventional lender. There are many lenders who tailor their loan products for investors and these loans are made with rehab in mind. The key to this would be the amount you have to put down, the Loan To Value, the Loan To After Repaired Value and your credit score. My name is Tom Harrier and you can email be at: broker@tomharrier.net or call me at 407.928.8542.

Yes renovation loans can be done using FHA and Conventional programs. Mr. Acres is correct if the repair is marked as a safety issue, it must be corrected prior to closing. If the repair issue is marked cosmetic, than the repair within a certain time period can be done after closing.