The answer is YES mortgage payments can be financed, but there are few things to keep in mind if you decide to do it.
Conventional HomeStyle and Standard FHA203k loans allow up to 6 months of mortgage payments to be collected through the loan so that you can live elsewhere while the remodel is taking place and not have to worry about making two housing payments. But keep in mind the home must appraise for enough money to build them in.
The money collected to pay your mortgage during the construction may only be applied to the mortgage while the home is uninhabitable. If the home is livable mortgage payments cannot be paid from the renovation escrow fund. That means if three months of mortgage payments were collected but the home was only uninhabitable two months, then only two mortgage payments can be paid by funds collected in the renovation escrow.
Any unused money that was collected in the Renovation escrow will be applied to the principal of your mortgage at the closeout of the project. This is a good option for those who need to rent another home while the renovation is being done.
Have questions? Give me a call or email me your questions. I would be happy to help.