Hi Anthony,

Your biggest hurdle with buying a "bank owned" property with an FHA mortgage is the house must pass a minimum inspection FHA appraisal. Many bank asset managers would rather go with a "conventional" buyer or ALL CASH buyer because there will be no "condition" issues that will delay the sale. Bank-owned properties are normally sold "as is" and the bank will not pay to have plumbing leaks repaired or roof repairs so after you pay for appraisal and home inspection and the appraiser finds issues with the house, you may lose the house.

Because you are in a weak financial position to compete for bank-owned properties you may want to look at non-bank owned for that reason. Also short sales can be problematic for you, too, unless it is a newer home. Short sale owners will not normally pay for any repairs (and you say you have no cash to make those repairs) needed to pass an FHA appraisal inspection.

Lastly if you can put 5% down, you may be able to qualify for a "conventional" mortgage. Call Thomas Lofy with ThirdFederal Savings & Loan. 727.771.6341 Some credit unions may also a 5% down program. Try http://www.gtefcu.org.

Hope this helps.

Alma Rose Kee, P.A.
Charles Rutenberg Realty, Inc.
813.244.9898 http://www.SoldOnTampa.com

Hi Anthony,
Sitting down with a mortgae broker is a good first step, and there are also many ways to finance your purchase wthout going to an institutional lender.
I am also an REO broker, and can tell you that there is nothing majic about bank owned property.
You'd be selling yourself short if you only focused on them.

Anthony how "high" is your income and how many in your household........ if you could answer that question I might get you $7,500 for downpayment........ on top the 8k from Obama.
I'm one of the few in Tampa "certified" for that.
best regards.

Hi Anthony,
The first thing you want to do is meet with a mortgage professional to not only pre qualify you but also to run payment numbers etc. Once you know what sales price, down payment and monthly payment you then can make an informed decision on your offer.

Melissa Antenucci
Ameritrust Mortgage
561-417-9221

You may also want to consider homes that qualify for Homepath. These are Fannie Mae homes that have special financing and you may find some good rehab deals that they will finance - they look for really good credit and income with little money down. Just a little different that FHA but similar. Thank you.

FHA is the least expensive way to go in the city, and they offer a loan that will help with repairs as well.

You should get pre-approved, not just pre-qualified, so you can compete with cash offers.

There is a program that allows you to borrow the tax credit you would receive from the government if you are a first time homebuyer. That would assist you with your down payment issue if you qualify.

Feel free to contact us at info@TampaNativeAgents.com if you have further questions.

Shouldbe pretty easy with FHA loan you'll only need 3.5% down. The trick is finding the bank owned home quickly so your the first bid. And really the time frame of a short sale has decreased quite a bit lately so I wouldn't rule that out either. Your best option is FHA and asking the bank to cover up to 6% of your closing costs. If you don't mind living in Pasco County or a rural are you can get a USDA loan and if you can get the bank to pay closing costs you might not need to bring anything to the table! Letme know if you want my help.

Becky 814-240-2615
Becky@YourTampaHome.com

Anthony, are you going to live in the home or are you buying it as an investment? If you are buying the home as your primary residence there are different loans available with low downpayment; FHA is 3.5% down and USDA requires no downpayment but has income and location restrictions (check the link below for more information)
The real challenge in buying a bank owned property right now is getting your offer accepted, there are multiple offers on all properties that are priced well.
If you would like a list of bank owned properties just send me an e-mail.