Rehab financing for investment property

[Andrey Pak]

Hello, 

I am in Philadelphia area and wonder 

1. what are the options/programs are out there to get mortgage financing for investment properties in non-livable condition. I was told that traditional mortgage can not be issued on a property in non-livable condition. The property can range in condition from shell to incomplete rehab. I would be looking for a mortgage to cover the purchase and then finance some of the remaining rehabbing. Willing to put some equity as well.

2. I was told that 203k are only for first property that will be owner-occupied? Is that so, or are there ways around it? Like if I will be ok to move into that investment property for a year while rehabbing - would that satisfy the requirements for that program?

3. I understand that there are also private money, but as it is my first investment property, there are a lot of risks, I am not comfortable taking with hard money lenders on the first transaction. 

So, overall, has anyone heard of any banks/credit unions in Philadelphia area that have mortgage programs for investor properties in unlivable condition?  Or am I missing any of the other pieces/ wrong in some assumptions?

Would appreciate any tips. Thanks, 

Andrey