Buying a foreclosure is exactly the same as buying any other property â€“ 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 â€“ 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 â€“ 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 â€“ Top 17 Questions Answered
Lookinâ€™ For an REO? 8 Things to Expect When You Open the Front Door.
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.
Happy househunting - please let me know if I can be of help.
Thomas J. Stevens, Loan Officer, Flagstar Bank
Financing in 50 states
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.
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..
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.
Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
firstname.lastname@example.org Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-318-7004 Fax
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.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
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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.
Prudential Connecticut Realty