Distressed FC - Bank won't finance. Alternative financing option?

[David Waldy]

Hey BP Fam,

We found an off-market, distressed Foreclosure that didn't sell at auction and Freddie Mac took it back. Contacted broker in charge a month ago and he did the "set-out" and initial review yesterday... Went well, but the broker told me the house is a wreck. We haven't seen the inside but will be able to in the next few weeks prior to it being listed. We fully intend on a mid-term (2-4 year) live in flip.

Externally, the house is GORGEOUS. Other than minor cosmetics and landscaping.

We qualify for a traditional mortgage and the house would be owner-occupied. And we would plan to do a rehab loan to at least get it livable.

BUT.............

Biggest issue is the bank won't finance the property due to the current condition.... (mind you, none of the below issues scare us and there is a chance that some of these issues will actually be rectified by Freddie Mac prior to listing according to the broker. He said in most cases, they will opt to do just enough to "Get it sold".)

- No HVAC/HEAT - units/compressors taken by previous owners.

- Full cosmetic rehab including flooring

- Roof Replacement

- Septic Backup

- Small Kitchen Fire (Appears to just be stove and hood)

What options to do have to buy this home?

We don't have the cash and bank says it's too much of a risk...

Are there alternative loan options we can present to the bank so they feel confidant approving the loan or another route we can go to seal the deal?

Any advice would be wonderful!!! - House is supposed to be listed in the next 30-60 days according to Broker.