Having just gone through this in the last year, I can say there is a FHA 203(k) Rehab Loan/Insurance which is designed to do what the author desires. However, i

Having just gone through this in the last year, I can say there is a FHA 203(k) Rehab Loan/Insurance which is designed to do what the author desires. However, it's not exactly easy to do (a full rehab doesn't qualify for the "streamline" version), but it's a thing. I'm not an underwriter so I'm not sure if the proverbial $1,000 house + $90k in renos is something they'd cover, but since the author doesn't even mention the 203k I'm left wondering if it was researched at all. http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203k--df http://portal.hud.gov/hudportal/HUD?src=/program_offices/hou...