Home Buying in 93280>Question Details

Lgutierrez10…, Home Buyer in Wasco, CA

Is it possible to buy a foreclosure home with an FHA loan or USDA loan?

Asked by Lgutierrez1020, Wasco, CA Thu May 2, 2013

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You can purchase ANY single family residence with an FHA or USDA loan. It just depends on the condition of the property. Several years ago, I could use to fund USDA loans with missing cabinets, toilets, missing appliances, etc but over the past couple of years the USDA has adopted the same "Health and Safety and Property Standards" as FHA. Therefore as long as home doesn't have say...broken windows, exposed wiring, missing toilets, or a stove then you should be good to go. And even if it does, we have the FHA 203K that allows a buyer to finance the home in a "As Is" Condition.

If it doesn't meet the minimum standards then you can either request the seller to pay any lender required repairs by have your Realtor submit a Request for Repairs, or you can pay it yourself through the escrow process. You can even use the USDA loan to finance HUD REOs. I have been doing both FHA and USDA loans while most Loan Officers were still in elementary school. Hopefully you choose to work with an experienced LO with a proven track record of smooth transactions so you won't get any surprises or what we call the 11th hour squeeze. Check out my Profile and Recommendations, that should speak for itself.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/03/usda_loan…
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sat May 4, 2013
Thank you for the answers. I appreciate it.
0 votes Thank Flag Link Fri May 3, 2013
Yes you can as long as the property meets their property requirements. Talk to your local Mortgage Broker.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of 10+ years
http://www.everlastingcredit.com

We also have DIY Packages available.
0 votes Thank Flag Link Fri May 3, 2013
To answer your question, the answer is yes as long as the condition of the property passes the FHA and USDA guidelines.

However, there is what we call the 203K loan, which is an FHA loan intended for homes that need rehab or renovation.

Talk to a lender about this.

Best of Luck.
0 votes Thank Flag Link Fri May 3, 2013
Technically and legally it's possible. Now ask me whether you are likely to get a foreclosure with these loans...and the answer would unfortunately be no.

Foreclosures tend to attract more offers than traditional sales leading to a multiple bid scenario. Whenever this happens, the bank will pick the strongest buyer...the one with the most cash down.

Good luck to you.
0 votes Thank Flag Link Thu May 2, 2013
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