Financing options for buying an unfinished house?

General Questions
#1

We’re moving soon, and interested in buying a particular house that was abandoned at the end of construction. It’s very close to being finished, and my husband and I are capable of doing the rest of the work ourselves (we have a lot of experience in renovating houses, and this would be a cinch). The bank is threatening foreclosure on this particular property.

The problem is getting financing. The house is not finished enough to have an occupancy permit. We’re talking to the owner about the possibility of him financing it for a few months so we can finish it and refinance, and also to the bank that’s foreclosing about working something out, but I was also wondering if there are other options out there. Does anyone know of banks or lending institutions that specialize in these sorts of things? We have excellent credit and can afford the house.

Thanks!

#2

Construction Loan?

#3

I don’t know the specifics, but there is an FHA 403k loan available out there that is specifically for homes that are in need of repair.

It is for houses that will be owner occupied, but I don’t know much mroe than that. MIght be worth checking out, though.

#4

A friend who built his own house got a construction loan that somehow converted to a mortgage. He was on a very tight schedule, working a full time job plus building the home in his spare time which was basically every second not spent at his job. I spent a few all nighters helping him make deadlines.

#5

Thanks!