Do Lenders Have a Problem Funding Rehabbed Houses?

I was wondering what I need to be aware of as far as how lenders look at rehabbed properties. Do
purchasers have a hard time getting a loan on a rehabbed property? I was told to document the repairs and take photos.

Any other advice or ways I can proceed in order to minimize problems down the road?

One thing you should be concerned about is the value that you will actually get from the house after the rehab job. If you fix up a property to a point where it will be beyond the other homes in the area that will be used for comps, than these other properties could drag your value down and you may not get what you anticipated on the sale. So try to pick a rehab in an area where your bringing the home up to a level consistent in the area. Lenders are slashing values left and right. Just something to consider.

There is also some restrictions on seller’s time on title but this varies from lender to lender. 3months is generally good.

With guidelines and underwriters tightening up. You have to be able to document all the upgrades to justify the increase in price. It will also make your appraisers life a lot easier.