Home Buying in Abington>Question Details

Brandy0909, Home Buyer in Abington, PA

I am looking to buy a foreclosure property. Do all foreclosures require a high down payment, around 20%... Or are there any which allow for a smaller

Asked by Brandy0909, Abington, PA Wed May 11, 2011

down payment?

Help the community by answering this question:

Answers

12
Brandy0909:

Buying a foreclosure is exactly the same as buying any other property – they will accept FHA loans as long as the property condition qualifies. And, in most cases, will also provide you with a credit for closing costs IF you ask. Additionally, many foreclosures are Fannie Mae properties which come with HomePath financing – as little as 3% down (if they qualify) they will usually include you a credit for closing costs as well.

Find a good local Realtor with extensive REO experience and a good local lender – together they will show you all your options and get you into the best property for you with the best loan.

Here are a few posts that may be helpful:

How To Buy An REO – Top 17 Questions Answered
http://www.trulia.com/blog/carl_medford/2009/04/how_to_buy_a…

Lookin’ For an REO? 8 Things to Expect When You Open the Front Door.
http://www.trulia.com/blog/carl_medford/2009/01/lookin_for_a…
.
1 vote Thank Flag Link Thu May 12, 2011
You can pay smaller amount and not 20%.
0 votes Thank Flag Link Wed Feb 20, 2013
Brandy,

I specialize in Renovation Financing... so in order to get a great buy, you typically are going to pick up a foreclosure that needs a little "TLC". There are many renovation programs available to you, including some that are 100% FINANCING! They all have different eligibility requirements and boxes that both borrowers and properties must fit in... I would be delighted to help you to see what suits your needs best.

In addition, be careful of the lenders out there saying they have FannieMae HomePath Renovation Financing... MOST do not. I can do this loan in ALL 50 States, and PA is just around the corner. :)

Please reach out if you would like to work with me personally.

Best,
b
Web Reference: http://www.203kworld.com
0 votes Thank Flag Link Tue May 17, 2011
Foreclosed properties now owned by the bank or agency are also known as REOs. I have financed HUD REOs with just $100 down and FannieMae REOs with just 3% down using those agencies' special financing for their REOs. Likewise my employer, Flagstar Bank, offers special financing on its own REOs. So you can get some special deals. As others have mentioned you can buy them with a regular loan such as no down payment USDA or VA loan or 3.5% down FHA loan.

Happy househunting - please let me know if I can be of help.

Tom

Thomas J. Stevens, Loan Officer, Flagstar Bank
Financing in 50 states
0 votes Thank Flag Link Thu May 12, 2011
Brandy,

How much are you looking to spend? I have mortgage License and I have a real estate license back for 5 years and there are a lot of foreclosure & short sales in our area. Also are you looking for primary residence or investment? These are questions that a bank would need to know to find you the right program. I can represent you and help you achieve your goal.
0 votes Thank Flag Link Thu May 12, 2011
If teh foreclsoed home meets certain standards you can get in for no money down for a usda loan, 3.5% down for a fha loan, a conventional loan is as low as 5%. You as teh buyer needs to quailify and the house needs to be in a condition acceptable to the bank.

Your firsty step should be to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know what mortgages you may quailify for and what teh down payment requirements are. Then you can ask for the criteria for homes that you will be able to get a mortgage under the mortgage programs you were approved for. Ask the listing agent or your buyer broker if the home meets the criteria you were given..
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu May 12, 2011
Foreclosures are subject to normal lending practices. however,depending on condition, it may not qualify for government insured financing; any lender required repairs may be your responsibility. Furthermore, if a use and occupancy permit is required, you will probably assume those responsibilities also. Good hunting!
0 votes Thank Flag Link Thu May 12, 2011
Although you do not necessarily need 20% down to buy a foreclosure, the best buyer for a foreclosed property is one paying cash. The more money you are putting down the better chance you having your offer being accepted by the bank. As I represent banks on thier foreclosures in the 5 county area, which of course includes Abington. Please let me know if there is any additional information i can help you with.
0 votes Thank Flag Link Thu May 12, 2011
Financing a foreclosed property is similar to financing a privately-owned property. It will depend on the type of mortgage program you qualify for, as well as the condition of the home. If the home is in good condition, you may be able to get an FHA loan with a 3.5% down payment. If it needs work, then you may have to come up with a higher down payment, or try to obtain a rehab loan. Talk with a mortgage professional to see what your particular financial situation will be. Good luck!
0 votes Thank Flag Link Thu May 12, 2011
Good morning, Brandy0909.

As already stated below, foreclosures typically come with the same mortgage rules as any purchase. Most will allow for both FHA and Conventional financing (3.50% - 5.00% down), and the same rules apply.

I actually grew up in Abington for the first 18 years of my life and would be happy to help you find a suitable place to live in my home town; I know it very well. Feel free to email/text/call if you need any assistance.

Best,
Tim

Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
http://www.phillyurbanliving.com

tgarrity@brownmckinney.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-318-7004 Fax
0 votes Thank Flag Link Thu May 12, 2011
Hello Brandy,

Foreclosures (for the most part) do not require any downpayment that is different from any other purchase. There is a huge amount of foreclosures out there but there are also mortgage programs to suit.
If you are buying at sheriff sales that is a different animal and a larger deposit is required up front.Some foreclosed homes (homepath) are owned by Fannie Mae and Freddie Mac and provide special mortgage programs specific to those properties. Also, even if the foreclosed property has been damaged you can finance the repairs. Call me and I would be happy to discuss your options and get you pre-qualified.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
0 votes Thank Flag Link Thu May 12, 2011
Hello Brandy,
No, all foreclosures do not require a 20% down payment however; the more money you offer towards the purchase the more attractive it looks to the bank. They like to see as much cash as possible and, of course, at the highest price.
You can give a lesser down payment amount and submit a pre-approval letter from a lender stating that you are qualified to purchase at your offer price. Much depends on your competition.
Hope this is helpful.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Wed May 11, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer