Home Buying in Saint Cloud>Question Details

Marilyn Mald…, Home Buyer in Saint Cloud, FL

Can I get a mortgage loan to a buy a foreclosure? or do I have to buy it cash?

Asked by Marilyn Maldonado, Saint Cloud, FL Sun Mar 11, 2012

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BEST ANSWER
Hi Marilyn :)
Yes - foreclosure properties can be financed as long as they meet the conditions required for financing. Some foreclosure homes do not meet financing conditions, but it has been my experience that more often there is financing available then unavailable. Please let me know if you would like me to have a mortgage broker contact you and prequalify you to buy a home in Saint Cloud. I have lived in Saint Cloud for the last 17 years and would be more than happy to help you find one!

Thank you!
Carly McDonah, Realtor
Green House Realty
407-791-1255
carlymcdonah@yahoo.com
1 vote Thank Flag Link Sun Mar 11, 2012
It's possible to get a loan on a foreclosure, however the property must be habitable in order to do so. Some foreclosures are, others are not. If you're a first time buyer planning on using an FHA loan, then there are some additional requirements in regards to what they consider to be habitable. Finally if the property does need work you could look into what is known as a 203(k) loan which is a type of FHA loan which starts off as a construction loan, and converts to a primary mortgage once the work has been completed.

There are may guidelines and regulations that come with a 203(k) loan and you'd want to speak to a good local lender in your area who specializes in these, as not every mortgage lender is willing to handle them.

Wishing you the best of luck and happy house hunting.
1 vote Thank Flag Link Mon Mar 12, 2012
Hi Marilyn
The process is very simple. Homepath is one program, and there are several others which will provide for repairs as well. There is also the Neighborhood Stabilization Program where first time home buyers who qualify; can purchas a home for $1000 down. As a Short Sale & Foreclosure Resource Specialist, as well as Real Estate Broker & Owner of St Cloud Homes & Land, LLC our highly trained Buyers Agents have the latest information to make your transition into homeownership an easy process--we help buyers such as yourself everyday.
Give us a call and we will be happy to help you get started. 407-616-9904 Your Local Real Estate Specialists.
1 vote Thank Flag Link Mon Mar 12, 2012
Hi Marilyn,
Sure, you can get financing - as long as you meet the criteria. You may even want to look into a 203K FHA loan which will provide for repairs. Contact a Mortgage person or ask your Realtor for mortgage professionals you could talk to. Get pre- approved first, so you know exactly how much yoou have to spend.
Good Luck!
Genevieve Ramachandran
0 votes Thank Flag Link Fri Mar 16, 2012
Hi Marilyn,

As mentioned earlier, if a foreclosure has condition issues (old roof, broken a/c, exposed electrical wiring, peeling paint on older than 1978 house, green pool, etc.) you may not be able to get a "regular" mortgage.

You can get an FHA 203k mortgage with only 3.5% down. You would have a contractor bid the "repair" work (i.e. new roof, etc.) and that amount would be added on top of your mortgage and the repairs would be done "after" closing. Just make sure the lender you chose can do a 203K mortgage as not all will tackle this mortgage.

Also if you happen to find a foreclosure owned by Fannie Mae you can get a HomePath Renovation mortgage to include repairs to be done after closing. Not many lenders do the HomePath Reno mortgage but Regions Bank does so contact them.

All the best,
Alma
Alma Rose Kee PA
Future Home Realty
0 votes Thank Flag Link Mon Mar 12, 2012
Marilyn,
It sounds like you have awakened to the potential todays real estate market represents. You are choosing wisely.
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Now, the correct answers really depends on your situation, goals, resources, skills and time line. So, that however, won't keep me from sliiding out on the thin ice with a few suggestions.
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Yes, a mortgage can be obtained for purchasing a foreclosed property. In many cases this home will need to meet inspections guidlines and be inhabitable. but there is more....

A mortgage can be obtained that will include the costs to repariing and equiping a home to make it inhabitiable. Again, understanding your goals and abilities are essential.

A mortage can be difficult to obtain on structures priced less the $50,000. You may need to pre-pay some fees in this situation.
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You would be well servied to work with a multi-dimensional real estate professional who can leverage this environment to your greater advantage. A low priced buyer competing for foreclosed homes AND is using bank financing is at a real disadvantage.
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Consult with your real estate professional to establish your objectives and capabilities and follow the acquistion path most suitable for your situation.

Best of success in acquiring your new home,
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
0 votes Thank Flag Link Mon Mar 12, 2012
Yes to the first, no to the second. I have a nice young couple closing on a house in Harmony this week They will have a homepath mortgage. If you are going to be an owner occupant, then buying with a mortgage is not a disadvantage. Cash is not king to Fannie Mae, Freddie Mac, or HUD. Owner occupants are king.

Start with your own bank and see how much the will pre-approve you for. You can always change later. That's what the young clouple closing in Harmony did this week.
0 votes Thank Flag Link Mon Mar 12, 2012
You can get a mortgage to buy a foreclosure as long as it meets the criteria for appraisal and you meet the criteria for obtaining a mortage. They are treated the same as other mortgages especially if they are in fairly good shape. Godd luck.
0 votes Thank Flag Link Sun Mar 11, 2012
Hi Marilyn,
If you would like any assistance, please feel free to give me a call.
You just need to get a pre-approval. The best way to do that, is go the bank you have been doing business with
and let them know that you are looking for a loan.

Devi.
407-227-3886
0 votes Thank Flag Link Sun Mar 11, 2012
Absolutly you can....For more inf call me 386-334-2226

Mike khorassani
Realtor
Web Reference: http://mksellsflorida.com
0 votes Thank Flag Link Sun Mar 11, 2012
Foreclosure can purchased with a mortgage; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Sun Mar 11, 2012
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