re: Cost to renovate a gutted house?

Most places aren't going to give you a true construction loan on an existing structure. Not in my experience anyway. Not even sure you can get a no work affidavit on one or not to start.

Also, the 203(k) through FHA is one loan. You can buy and remodel under one loan then roll it into the fixed mortgage. Many construction loans are 180 days then you have to shop the mortgage to pay it off so you are looking at two closings with costs associated with each.

quote:

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Summary:

Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.


Purpose:

Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

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LINK


I think the USDA has a similar program.