I need some money for a REO - it is not able to be occupied

I am interested in a REO that I looked at. It needs a lot of work. there is mold in the property so it can not be lived in.

the asking price is 190k (way overpriced for condition) I would guess that it needs 40k worth of work. With traditional loans I believe I need a construction loan since it is not able to be inhabited, I could be Wrong though. The property is in the state of Illinois, the area homes are being bought and knocked down with McMansions being built there.

I need to get qualified for some money.

I have 60k for a downpayment that I would feel very comfortable with. My middle credit score is 615. I need the loan undocumented income. I am in the process of fixing my credit now. My credit has collections and incorrect items on the reports (One incorrect item is a 25k college loan that has been paid off, but not removed from my reports).

Please give me advice on how to obtain some cheap money.

Thank you.

What you could do is apply for a loan with a higher LTV and then show your lender that you are putting the 40K in escrow to rehab the home.

How much is the home worth? You may be able to get a hard money loan, it is higher interest but they accept lower credit scores. 615 credit and no documented income is a tough sell to conventional lenders.