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Buy a building containing less than 5 units, and this HUD-insured program will base your loan on the post-renovation value of the premises. You can expand a one-unit building or reduce a 2-4 unit building. You can even rehabilitate a mixed-use property.
You must live in the building yourself. Loans are subject to property appraisal and approval of your credit.
This program not only gives buyers a leg up, but also spurs community restoration all over the country. You can apply through any FHA-sanctioned lender.
Link to: www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
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