Rehabber Loan Question

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Anyone ever bought a rehabber on a construction loan or heard of this before? I had a Realtor out of TN tell me about a loan program where you buy the house in any condition as long as you have a bid from a contractor to repair/improve. The appraisal is based on the value when all of the work is finished and they give draws to the contractor. He reccomended I use this to buy HUD forclosures...

All my other properties I used my own cash for the rehab...

Anything advice on this?