Rehab financing for investment property

6 Replies


I am in Philadelphia area and wonder 

1. what are the options/programs are out there to get mortgage financing for investment properties in non-livable condition. I was told that traditional mortgage can not be issued on a property in non-livable condition. The property can range in condition from shell to incomplete rehab. I would be looking for a mortgage to cover the purchase and then finance some of the remaining rehabbing. Willing to put some equity as well.

2. I was told that 203k are only for first property that will be owner-occupied? Is that so, or are there ways around it? Like if I will be ok to move into that investment property for a year while rehabbing - would that satisfy the requirements for that program?

3. I understand that there are also private money, but as it is my first investment property, there are a lot of risks, I am not comfortable taking with hard money lenders on the first transaction. 

So, overall, has anyone heard of any banks/credit unions in Philadelphia area that have mortgage programs for investor properties in unlivable condition?  Or am I missing any of the other pieces/ wrong in some assumptions?

Would appreciate any tips. Thanks, 


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Try to find Private Money.

I cant imagine any regular mortgage programs will do your deal.They want good collateral with a supportable appraisal.

Call local title companies and ask if they have closed any deals with private lenders (not Hard Money Lenders). Ask the title companies if they could hook you up with these people.