Cash with mortgage

[Gilbreth Seno]

If I'm applying for a mortgage, will a bank give me part cash and part finance? In other words, as an example, I'd like to buy a property for $70k (finance) and put $30k (cash) into rehab. Is this something that banks do?

[Stephanie Medellin]

@Gilbreth Seno  A lender will do this as part of a renovation loan; however, the cash won't go directly to you - it will be paid out to your contractors for the repairs.  The scope of work and estimates will have to be provided as part of the loan process, and inspections will have to be done before the money is released.

If you're going to be occupying the home you can look into either an FHA 203(k) loan or Fannie Mae Homestyle loan. The Homestyle loans are also available for single unit investment properties (single family houses, not duplexes or triplexes).