There is a lot of good advise, another avenue to look at is FHA 203K streamline. If you find a house that needs up $35,000 in repairs and upgrades with the 203K streamline the mortgage company adds the price of repairs to your mortgage. At settlement you get half the money to pay the contractors and when the work is completed the bank releases the other half.
This is a way to buy the AS IS homes with FHA.
ReMax Realty Services
For details about the tax credit go to http://www.irs.gov .
You may not have enough time to buy and build.
You mention trying to fix credit card debt. Do you mean your credit is not good ? The first thing is to talk to a lender. You can look up hud approved lenders on http://www.hud.gov and also talk to credit counselors mentioned.
If you pay off your cards will you have money for down payment.?
A good lender is the best person to advice you.
Once you know where you stand, you should hire a good buyers agent to help in your search.
Short sales do take time for approval and depends on the lender. Your agent can guide you.
Foreclosures are not always the best buys. If adding on to the house is important, discuss with the agent because there are guidelines for adding on. You can not buy a condo if you want to add on.
There are some wonderful buys in Bensalem. There are homes in all price ranges. So please talk to a lender first.
Fran had an excellent response below. I just wanted to add that FHA has changed its fees and requirements, so your absolutely best bet right now would be to speak with a mortgage lender first. With mortgage rules changing daily, we really need to rely on mortgage lenders to know what they are talking about in order to give us reliable info. If you need some recommendations of good guys, shoot me an email. I know several who specialize in FHA lending.
Also, make sure that your agent has some experience with "as-is" and TLC homes. Someone who can give you realistic ideas of costs to renovate, what are "big deals" and what are cosmetics, etc.
I like your spunk ;) Girls can do rehabs too! (I do fix and flips investments, and LOVE a good junker house that I can make pretty. If you want to pick my brain, shoot me an email or give me a call).
Here's a blog I wrote a while ago on the problems in financing a TLC property. Most that I've been seeing will not qualify for FHA financing.
Sherry L. Poley
820 Township Line Road
Direct (215) 230-7152
Office (215) 369-3800
There are currently 7 homes in Bensalem for sale under $150,000. Five are bank owned and two are individualy owned. So properties are available. The problem is getting approved for financing and getting approved for a specific property. All of these are being sold "AS IS" with the buyer responsible for the Use and Occupancy certificate.
So to answer you questions.
1. You can get a deal on a foreclosed home. Do no however confuse a foreclosed home with a home in foreclosure.
2 FHA will finance a foreclosed home however the homes condition may make it problematic. Look for a home that qualifies for Home Path financing.
3. If you are under contract by April 30 and close by or before June 30th and otherwise qualify for a home buyer credit, then you qualify. The fact that you buy a bank owned property does not prohibit you from taking the credit.
4. No the type of house does not matter for the tax credit. You must qualify and the property must be used as your primary residence.
Keep in mind that Foreclosure web sites often liist information from the public record of properties that may be in financial distress. This does not mean that they are for sale or available at the prices indicated. Furthermore many sites ask you to pay for a "list" of available properties. We advise caution when something seems to be to good to be true or when anyone is asking you to pay up front.
If you want any other information do not hesitate to contact us.
Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road