How do you finance a new home purchase & renovation?

I am looking to purchase my first home. I am a first time home buyer so I can qualify for what we call in CT CHFA for a reduced mortgage rate. My question is the home I am looking at needs probably about $40-60K of work. The home is listed for $184K. Would I take a mortgage out for $250K to purchase & renovate... show more I am looking to purchase my first home. I am a first time home buyer so I can qualify for what we call in CT CHFA for a reduced mortgage rate. My question is the home I am looking at needs probably about $40-60K of work. The home is listed for $184K. Would I take a mortgage out for $250K to purchase & renovate the home? or Do I take a mortgage out for $184K for the home & then a separate $60K loan for the renovations. I am not positive how this works.

Thank you.
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