Construction loan for a really gross house?
I put a lowball offer in on a house that's in really bad shape. I know a bit of the story with the hosue, older married couple, husband dies, wife is selling the house. The inside is nasty. Like real bad. Think hoarder house that got emptied but not cleaned, and had cats too. Structurally the house is in good shape. Windows are newer, HVAC is newer, plumbing, water heater etc all look good enough. But I would be doing all new flooring in the whole house. Both bathrooms are about as nasty as a person can imagine. So both need flooring (carpet, puke) pulled, new toilets, vanities, and 1 shower, 1 tub/shower combo all pulled and replaced. Will also need new kitchen cabinets too.
So on to my question. What are my loan options? Construction loan for over the amount of the sale to get the property bought, and repaired? Then a conventional mortgage that pays off the construction loan based on the repaired value of the home? I've bought one house before, but it was move in ready, and did a conventional loan with 5 percent down and it was pretty simple. Just looking for some help here. Couldn't post in the regular Real Estate sub, despite almost 10k karma, so posting here instead.
Posted Jul 13, 2026, 4:26 PM UTC