FHA203k and Fannie Mae Homestyle loans

[Lisa O'Boyle]

Hi All, 

This is my first post on BP! Here’s my question. I have a property I’ve made an offer on. I’ll hear within a few days if it’s accepted. The property is in a terrible state. Calling it a level C property would be generous (no roof, no walls, no problem?). I submitted my preapproval letter for a FHA203K loan but they want 25% down for the after repair and purchase. I don’t have that kinda dough. The repairs on the house will probably take 8 months or so. And I won’t have a true estimate of repairs until the offer is accepted (which was much lower than their asking price). Once it’s all done, as long as I don’t go way over my proposed budget, it will be cash flowing pretty well. 

Here’s my question: I know plenty of you have probably been in my shoes. What advice do you have on getting that down pmt? Is there another loan type I should consider instead? Any familiarity with these loan types? Help a newbie out. :-D

Thanks!