I'm trying to buy a house that's listed as not inhabitable in its current state. I want to buy it so I can repair it and live in it.
I have all the financials I need, and I have excellent credit, but I'm having difficulty getting the loan since the house is marked as not inhabitable. Due to how all the loans are structured, I'd have to have a licensed contractor do the work for the banks to do the loan, which defeats the purpose of me buying the house.
I can get around this by borrowing money not through a bank, but I was curious if I did this, would the interest would still be tax deductible? Or, would the loan have to be through an official bank for it to be tax deductible?
I realize that for the loan there has to be some documentation showing the loan is a real loan, and not just gifting money.