Can you rehab with a regular mortgage loan?

Can I rehab with a traditional mortgage loan instead of trying to get a hard money loan? For example, If I bought a home for $75,000 and moved into it while I was fixing it up for about a year, could I get the loan as owner-occupied since I will be living in it for 12 months? Anyone else move into their rehab projects or is this generally not a good idea? If you don’t move in, can you still get a traditional mortgage non-owner occupied? Thanks, Amy

It’s according to what work needs to be done to the property.

A conventional loan is going to require the property is in at least good enough shape to be occupied as soon as closing takes place.

If all you need to do is painting, carpet, etc., then you can probably get a conventional loan.

However, if there are any serious defects in the home that need major repair. Such as leaking roofs, structural problems, busted out windows, etc., these type problems will be noted on the appraisal and the loan will be denied by virtually all conforming lenders. Thus leaving you with little choice but a Hard Money or Private money loan…