Are there still mortgages that factor in money for repairs to the house?
I’m looking at a short sale that needs some work. Is there a mortgage that you can take out that will factor the money for these repairs in, assuming the final product worth the total mortgage?
Mortgage
Unless you are a general contractor that already has a relationship with a bank for these types of loans, generally no. That doesn’t mean it can’t be done, but it will be rare to find a bank willing to make a loan on any property needing repairs. You have a couple of options. Either find a contractor to get a construction loan for the project which will transfer to a home loan when it is finished, or come up with a way to purchase the home yourself without a bank. If you know someone, have a lot of savings, credit cards, etc., you could buy the property, make the repairs, and then get the loan from the bank.
FHA203K, finding a lender that handles these is hard. Wells Fargo is one, check with your local lenders that offer FHA loans.
As Alterfem says, what you’re looking for is a 203(k) loan. It does exactly what you want–lends money based on the after-repair value of the property. Just look for a lender who does 203(k) loans.