There are a lot of options for purchasing an REO house. You need to know that where there's a great deal with REO's price wise (sometimes), that they present a whole lot of risk on the part of the buyer. The buyer is responsible for obtaining the Certificate of Occupancy and for all repairs. This might not sound big, but you could spend thousands of dollars prior to settlement. You need to make sure that you cover all of the bases and that you are ready for the journey. You need a good real estate agent that will walk through the process with you. It's a rough road, so make sure you hire someone that knows what they are doing. There are options for FHA 203k financing as well as other financing if you don't need money for repairs. 203k financing allows you to get extra money for repairs. There are programs to streamline this process, but you have to realize that it takes time, money and a lot of patience. If you choose the FHA 203k route, you want to make sure that you choose a lender and mortgage rep that specializes in the process. When a lender understands the program, it makes it so much easier for the buyer because with any government program, you have to watch every detail. Make sure you get references. An experienced 203k lender will make it a lot easier on you. I hope this helps. Send me an email if I you need any further information.