Can a conventional loan be used for a house needing repairs?

Yes! There are options for a conventional rehab loan. Fannie Mae offers a nice option. I would be happy to discuss further.

Fannie Mae Homestyle Renovation

There are two types of answers here. First, is just a conventional loan on a house needing repairs. The answer is that all homes need to meet basic habitability rules at the time of closing. Conventional is more liberal, while government loans (FHA) more restrictive. For example, any house older than 1978. If there is peeling paint anywhere on the property, conventional loans don't care, but government loans will require it be scraped and painted prior to closing. Another example is say the kitchen is completely torn up and not functional. Both loans will require that be fixed. The second aspect then comes in 'fix-up' loans. Both FHA in the 203k rehab loan, and conventional in the HomeStyle renovation loan allow you to buy the home and get money to repair it. Learn more about FHA 203k loans at www.JoeMetzler.com/203k

More info needed, but in general yes.. Lending rules require the home be in "Habitable" condition.. any property deficiencies that have to do with safety or health concerns must be addressed prior to funding.. (mold, exposed wires, broken windows, etc..) It's possible you can obtain financing for a property that YOU think might need to be repaired, but for lending guidelines, it's acceptable.. If however the property does have deficiencies that prevent the property from qualifying for financing, then there is the HomeStyle renovation loan.. this is a conventional loan product where you can have major repairs done to the property and include the costs into your financing.. Try reaching out to a local mortgage professional.. (Not your local bank) and let them look at the property you are considering.. they should be able to advise you... I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893