Getting mortgage for home which was bought with cash (loan, foreclosed, credit)

[altus2006]

We bought a home which was foreclosed and butchered by the previous owner It was in such bad shape that we could not get a mortgage on it at the time, so we paid cash and put another $40,000 into it for repairs.

We would like to put a mortgage on it now and cash out the money we have spent. So far I haven't been able to get a conventional mortgage because of a 6 month waiting period from the date the house was originally purchased.

Does anyone know of a loan program which allows owners to get a mortgage in less than 6 months?

altus2006

[Ultrarunner]

No... I've been in the same situation.

[altus2006]

Originally Posted by BrokenCreditDotCom

You should be able to get a mortgage based on the $40,000 plus receipts times 85% as an FHA loan. If you wait twelve months then that calculation would be based on the appraised value.

Have you ever seen this done? Every thing I have checked says the FHA loan for a cash out prior to 12 months is based on 85% of the sales price of the house, which would not include anything spent on repairs.

altus2006