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
Are there still mortgages that factor in money for repairs to the house?
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.