Because foreclosures are usually sold in an As-Is condition, it's best to also consider a 203K renovation loan, just in case the property doesn't pass inspection.
Foreclosures are generally sold "as-is" and the seller will make no repairs. They often don't have utilities servicing the property or have it winterized which means you would have to set up those services to do your inspections.
If you are using an FHA or VA loan you would have to insure that the home would pass all appraisal inspections OR be prepared to make any lender required repairs at your expense prior to settlement.
Both scenarios should require that you be represented by a buyer's agent to protect you and to guide you in the homebuying process and be able to show you any potential problems. If you have a qualified buyer's agent representing you, either scenario should be smooth.
for a FSBO, you are free to make your own mistakes.
A Foreclosure will have a Clear Title and all the Liens will be identified and satisfied.
A FSBO might any combination of hidden problems.
Good luck and may God bless