Innovative financing to circumvent the as-is clause of HUD properties

[Rick Im]

HUD recently accepted my offer on a single-family house, and my bid price is 25% less than the market value, making it a great deal. However, the house requires minor repair work (e.g., several missing railing spindles, a fist-sized hole in one wall, and new carpet for a small section of the living room). I shared photos with several lenders, but they all said that these repairs "probably" need to be completed before closing. As you may know, HUD doesn't allow any repair work before closing. I considered ordering the lender's inspection/appraisal, but this wasn't an option because the water and electricity are currently turned off, and HUD won't turn them back on until I have submitted earnest money of $2,000. The bid price is $281,000, and I have $180,000 in cash. However, I can't use either a conventional or rehab loan. Since the repair work is minor, I would need $100,000-$110,000 for 2-3 months until I can (re)finance for a conventional loan. Any ideas?