Jeff,I am in PA . However, I use the FHA 203K rehab loan. It is similar to the Fannie Home Path. It requires only 3.5% down, can be gift funds and seller credits up to 6%.The FHA 203K loan allows for 96.5% financing of the end value amount or the sales price plus the total rehab costs, the lesser of the two.Let say you have a $125,000 sale price and a home needed $50,000 in rehab. If the property would appraiser after rehab for $175,000, your buyer can finance $168,875 (96.5% of the $175,000).Thru the FHA 203K, I have had no problems is getting any money for rehab costs.If you need more info or have any questions, please let me know
Barry,I can help you with this. I have been doing 203K loans in the Phila area for the past 5 years and originating mortgages for the last 17. I am located in Montgomery county. Please email me at firstname.lastname@example.orgAlso, depending on whether you are doing a streamline loan or not, I have several excellent 203K Rehab consultants( rehab consultants are required on all Non streamline rehab loans).