How to Fund HUD REO with Foundation Issues

[Alex Nelson]

I'm looking to purchase my second rental property. I've found a HUD REO that I'm submitting a bid for, however this home has foundation issues that are very apparent. I'm trying to get my bid in during the owner occupied round for the best chance at getting this property. My question is, since this has foundation issues, what are my options for financing?

I'm looking at the FHA 203K loan, however I'm not a fan of the higher interest rate and points associated with the 203k. Are there any other loan products that may work for the purchase of a home with foundation issues?