There is nothing wrong with the law, it is designed to protect people.

The Section 203(k) program was designed to address this situation.

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Is there anything else to this designation?

What I ended up doing was becoming basically self employed in the rehab business to feed me with something a little nicer than beans and to pay little luxuries like utility bills.

I met a Chicago attorney who had a practice that was specifically and exclusively designed to lower people's property taxes.

Of course, the $850 quoted could just as easily INCLUDE a total amount WITH the utilities figured in (even if the tenant pays them separately).

this is a program designed for owner occupants. 8)

You would need an additional $10K or so of your own cash to cover the excess of the rehab over the loan amount ($3K), the points (about $4.5K), and your holding costs (taxes, insurance, utilities, etc.

I am a 23 year old graphic designer looking to buy a first home to live in, fix up and eventually sell for profit.