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There are government backed loan programs such as the. Department of Housing and Urban Development's Section 203(K) loan program. It is used for homes that are single family homes with no more than four units to both buy the home and repair it all together. They are often FHA loans which many buyers in Santa Clarita have used to both purchase and do major rehabilitation and structural repairs on the home.
This 203(K) loan is a combination loan to purchase the home that needs work and to repair it. It also can be used as a refinance loan with repairs or as a loan for purely doing the repairs.
With an FHA loan the owners must only bring in a small down payment for the purchase and must agree to use a licensed contractor to make the repairs. There are usually two appraisals required for this type of loan and there is someone assigned to oversee the work and release the funds to the contractor at various points of completion.
There are some good loans for veterans which offer no down payment and excellent low interest rates. Many veterans have bought houses in Santa Clarita with NOTHING down, they are called VA No-No loans. You apply for them through a VA approved lender and can get more information from the US Department of Veterans Affairs.
A veteran would need to apply for a Certificate of Eligibility. I know of some excellent approved VA lenders and would be happy to provide any veteran with a list of good VA lenders that some of my Veteran clients have used. I have had several former VA Marine clients purchase beautiful homes in Canyon Country and Saugus.