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Thrifty Mortgage
The options available to you depend on the extent of damage to the home in question.  If the damage is minor and can be addressed by the seller, then it may make sense to go that direction. If the damage is extensive, then a home improvement aka renovation loan may be the direction you need to take in order to get the home up to lending standards.  Your real estate agent should be able to offer some guidance on the direction to take. If you choose to go with a renovation/home improvement mortgage, then make sure you are using a lender is familiar with this product. 
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