Want to buy a home undergoing rehab

[Shantanu R.]

Want to buy a home under rehab . 3 family home ( owner occupy) occupy . The home is not listed yet  & undergoing remodeling . Our realtor brought this off market deal for us to consider . We want to make some changes to the house & the builder wants a deposit from us (obviously) before they will agree to any changes & accept out offer. I have a few questions :

1. can I get a loan for a home that is undergoing remodeling 

2. How do the banks finance such deals , do they apppraise the home (how can they appraise something unders construction?)

3. How does the appraisal for such places work ? What if the home is the not appraised for the amount agreed between the buyer & seller how to deal with such situations cont4actually.

If someone has experience with buying and financing properties that are undergoing remodeling - please provide insights .

Thanks

Shane