Some Creative Advice Please
I have found some lenders. Some of them are willing to allow me to take the difference between the loan amount and the purchase price to use for rehab and house expenses.
But should I decide to go with one of the lenders that will only give me the purchase price of the home, what are some of my options on getting funding? Some are willing to put an amount in an escrow account, but only a licensed contractor can take money out and my husband and I are doing most of the repairs so that would not work. At the most I will need between 70%-75% of the LTV, maybe less depending on how low I can get the purchase price of the property. BTW- My FICO is low so my qualification will have to depend on the value of the house.
What are some options i have for finding additional funding to make the repairs on the home? Any creative Ideas, my ears are wide open!! 
Hello Scoobydoo,
What I do with my rehab units in order to get the funding for the complete project is: (1) locate a property that is well below market value; for example, the first property had many code violations and only had one of the four units rented. I selected two contractors to come and bid on the project. The repair cost were 51k. The sell price was 40k. I went to the bank with work-write-up. They ordered an appraisal of the property with improvements in mind. The first appraisal came back at 110,500. At this point there is 2600 dollars out of pocket for the purchase and 20% equity in the fourplex. I also can order a new appraisal at completion of the project, that could increase the value to say 116,500 resulting in a no-money-down deal. (2) Purchase in a revitalization zone. There are some area that have been targeted by the federal government for rebuilding. Fannie Mae has money that it will loan to rehabbers at a low low rate in order to bring these areas back to pre-exiting conditions. (3) Speak to a banker that specialize in construction loans. I am sure you will be able to secure the money that you need for your project if you gain the proper insurance paper work need to be a licensed contractor. These are just a few things that may aide you along the way. Bang them out.