Repairs on top of loan when purchasing a property?

[Darius Pasilaban]

Need some creative financing strategy here. Here’s my scenario:

Found a property on MLS with no pictures inside the property and no description of repairs/maintenance. The owner will show property once there's an approved offer. I wonder if it needs just cosmetic work, and I only have $5K cash, is there a way that you can make a deal with the owner to do the rehab and just bump up the price so my loan can cover it?

[John Montgomery]

You could try to get an FHA 203k loan, which will include repair costs into the loan amount. My understanding is that you get the draws on the repair money as you complete the repairs, but the loan would be the contracted price plus whatever the cost of repairs.