Home Buying in 44118>Question Details

carth3, Other/Just Looking in Cleveland, OH

If I buy a foreclosed house for cash can I turn around and mortgage the property to get the equity out to do the needed repairs?

Asked by carth3, Cleveland, OH Fri Oct 19, 2012

I see houses listed for 15,000 with an estimated value of 60,000.

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You should definitely contact a professional before you undertake a flip on foreclosure property. Getting prequalified is your best bet. Any mortgage or finance company will be able to inform you of all of your financial options and the programs available to you. There is an FHA 203k loan that can provide you with the funds to both purchase and repair/improve a home. However, you may be required to live in the home for a specific period of time. There are many programs out there, you simply need to find the one that best fits your needs and desires. Good luck!
0 votes Thank Flag Link Tue May 7, 2013
Typically yes you can. There are always circumstances that may prohibit this such as disrepair of the property. It may not be eligible due to it's condition. I would strongly advise that you seek approval for financing before you buy the house so you will know what "road blocks" you may come up against when attempting to mortgage it later. I would imagine finding out you can not access money to repair a property after you bought it would be a pretty bad thing. Good Luck
0 votes Thank Flag Link Sun Feb 24, 2013
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