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Many states offer rehab programs and, often depedning on income amd purchase price limits, these can be a great option. Check with your state website first and search for "state housing programs".

One federal loan program option is the FHA 203(k) loan program. It's broken into two pieces: The full 203(k) which can be quite cumbersome and pretty costly and the Streamline program which allows for up to $35,000 in rehab funds. The streamline is the most frequently used program in my experience. It does have limits (you can't add square footage to the home or move load bearing walls for example) but it is a very good program. Please make sure that you are working with a mortgage person who is very familiar with the program to avoid any unpleasant surprises!

I have included a link below to HUD's (Housing and Urban Development) info on the FHA 203(k) program.

Good luck and if you run into more questions, just ask!

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Q: What is rehabe loan and who is qualify?
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