Rehab loan needed for distressed property

[Mitch Turgeon]

I plan to make a cash offer on a distressed property, however this will eat up all of my cash leaving nothing left for the rehab. I hope to purchase the house for $170k and need $130k to spend on rehab. I have talked with a broker and a credit union and neither offer financing options for this situation. I will rehab this property then move my family in to it to homestead it and sell in a couple years. What are my options to obtain the $130k needed for rehab?

[Stephanie Medellin]

@Mitch Turgeon If it's an SFR I would try a lender that offers fannie mae homestyle renovation loans. It might be better to just purchase with the rehab loan, although that depends on how competitive your market is and how desirable the property is. I'm surprised the broker didn't have any options for you.