Homestyle Loan, Cash, or Hard money advice?

[Nicole Thomas]

Hi all,

There is a homepath property that I would like to purchase. I want to put a contract on it asap but am in a unique situation right now. I need to know the best thing I can do. 

Asking price is around 225,000. Needs about 35k in repairs It needs work so will not go conventional. I will be living there so owner occupant.

I'll air my laundry out... My cash funds are very very low right now (less than 8k in bank) due to loaning my brother large sums of money for his business every month when he was in a bind. He is repaying me in full next year, his business is looking good and i know hes good for it. My salary is 140,000 a year.

I wasn't planning on purchasing till I get my funds back but I came across a great house for a great deal. I am hoping something is possible for me!! This will be my first house purchase.

I was preapproved a few years back for over 550k but that's when I had funds in my bank but my salary was less than too. I didn't find what I was looking for back then so stayed renting.

I am in Maryland so if anyone has any recommendations of loan officers/banks to ask, I would like that. 

Have a few scenarios.

1.) I have the ability to borrow the full cash from a relative. I would like to use the money to buy and fix the property up but then need to get a mortgage on the property and pay back my relative. Is there a program with a bank that allows this? What are the programs called?

2.) A fannie mae homestyle renovation loan. I believe I would have to put 5% down, which i can get. They give money for the renovation. What banks offer this loan? in Maryland? Also do I have to have all work done with contractors? I read you can do some work yourself, I know people that can do some work and can contract out the rest.

3.) Hard money lender? Don't know too much about this. Roughly what does it cost to borrow 265,000? 

4.) FHA 203K. I have heard this is difficult. I read its around 3.5% down. Why is this difficult? Is it because you have to contract all work out?

ANY advice is greatly appreciated!! Thanks in advance.