If you want to purchase that “fixer upper” but will not qualify for the loan to do the improvements; look into Energy Efficient Mortgages. They have been around for a long time but most brokers do not talk about them because they either don’t understand them or want to do the paperwork required.
Part of the difficulty has been appraisers not buying into the value of energy savings but that is changing as more appraisers are becoming more aware of the green movement.
For veterans, this is a no-brainer and if you are a veteran looking to purchase a home, makes sure you mention to the broker. If you will need to do some improvements after moving in; you will not have to qualify for those improvement dollars.
Read the link below to find more details.