The bank who is selling the property may have a loan program in place, such as Home Path, and will give preference to a buyer who will occupy the property and use their loan program. In other situations, banks will give preference to Cash buyers.
Any of the available loans are fine. You do have to consider that the loan amount will be for the value of the property plus the cost of the repairs and improvements. On a case by case basis, you may get a bargain by purchasing and improving a foreclosure, or you may find that buying a property that is on the market, but not a foreclosure is you best deal.
An agent who is helping you search for a property can help you identify those homes which best suit your needs and your pocket book.
If you are looking in Northwest Philadelphia neighborhoods, I would be happy to help you.
Weichert, Realtors - McCarthy Associates
The main question that I have is how much work needs to be done? Conventional loans are always the easiest and hassle free but not all properties will be able to get conventional financing. There are loans such as 203K's (rehab loan) to insure borrowers have the financing to fix up the property. With a 203K loan the max that the bank will give you is $35,000. A contractors proposal will be needed so that the bank will see all the work that needs to be done. The $35,000 will then be disbursed like a construction loan. meaning a bank representative will go out and verify all work is being completed according to the proposal. I hope this helps a little, if it doesnâ€™t, please feel free to contact me. Good luck
Chief Operating Officer
Mortgage Unlimited, LLC
222 Outwater Lane Suite 4B
Garfield, NJ 07026
973.478.8444 x 1 Office
NMLS # 181322
I have mortgage programs for financing properties in need of rehab.If you go to my website click on the link at the bottom for an explanation of how they work
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
Michael P. Cohen ABR ASR, BPOR
1033 N. 2nd Street 5Th Floor
Philadelphia, PA 19123
Direct Line: 610-642-0347
Absolutely....getting a loan for the purchase of a foreclosed property can normally be accomplished easily. However, getting the selling bank to accept an offer that is not a "cash" offer may be a more difficult accomplishment.
Typically, in a transaction where you are the only interest in the property you will likely not have a problem. But in the case of multiple interest and cash buyers being involved, your financed offer may not be the favorable choice.
The most important consideration for ANY home and ANY buyer, is the buyers financial qualifications.
If we assume yours are fine, then... the second question is then home condition/what kind of loan.
If the home is in bad shape, then probably no financing is possible except for specific "repair" loans like an FHA203k loan, which require a buyer with stronger financial qualifications, AND a specific repair/update plan, generally through a licensed general contractor.
Your question is really best answered with a conversation, and if you'd like to contact me, glad to have a talk. I've done plenty of fixer uppers, with and without financing, As always the answer is in the details.
Long & Foster Real Estate
Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)
Office: 610-225-7400 x7438
Cell# 484-410-9765 (Preferred)