Rehab loans for investment properties besides HomePath?

[Asher Anthes]

So, I know about the home path renovation loan 10% down for investors.  Obviously this is limited to only certain properties.  Are there other conventional financing options for financing properties that need repairs?  Or am I limited to cash, or hard money?

[Hattie Dizmond]

@Steve Babiak is correct. Your local, portfolio lenders will have a lot more options for you. FHA insured loans can have some really strange requirements attached to them...sometimes randomly. When I purchased my first home, which I was going to occupy, they wouldn't close on the deal, until I put a stove in the house. They weren't concerned about missing light fixtures with exposed wires, but I had to install a stove, before we could close. They also required me to paint. Really? Weird.

Anyway, portfolio lenders have their own underwriting standards. They can make loans on properties the FHA won't give a mortgage against. Also, if your deal is good enough, you can get into the property with equity built in, which can reduce the amount you have to bring to closing as a down payment.

Hattie