FHA will offer programs from time to time to help investors fund properties they need to rehab. Check with a local mortgage broker to see if they have any lenders willing to participate in these FHA programs. Two examples of these loan programs are the FHA Title 1 loans and the FHA 203k loans.
FHA Title 1 loans of up to $25,000 are available to owner occupants and investors who want to repair or improve their property. Up to $15,000 can be obtained regardless of home value. And, if you need $5,000 or less, no security is necessary.
Here is the link to the loan guidelines for lenders on HUD's website http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm
With FHA 203K loans, the borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. They have the property type criteria listed on theri website listed below.
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