Home Buying in West Hartford>Question Details

Trina, Home Buyer in westhartford

I want to buy a foreclusure home in westhartford. How and what kind of loan should I apply for and what kind?

Asked by Trina, westhartford Wed Mar 5, 2008

of downpayment will I need to complete a transaction of 250,000

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Foreclosures can be very tough. Is the home listed on the MLS? Is the property in good enough shape to pass an appraisal? Don't go it alone, use a professional. Remember, the seller pays all the Real Estate brokers, you have nothing to lose having someone in your corner.

Peter
Web Reference: http://www.PeteNowak.com
0 votes Thank Flag Link Tue Mar 25, 2008
Hi Trina,

Depending on condition of the property and what you qualify
for is the answer.

Are you working for an agent?..do you have a mortgage
officer?

If no to both questions, I can have you talk to a mortgage
officer to qualify you and then also see the house with you
and get a good idea of what loan would be best for you
and this home.

Anne
Anne Miller Real Estate
0 votes Thank Flag Link Sat Mar 31, 2012
Trina,

This is a great question. The important variables besides your price range are the condition of the property, your credit score, and your personal financial situation. With an experienced realtor and a strong mortgage broker to help you, you will be able to determine how many options you have an choose the right one for you.

For instance, I am working with an investor now who had to pay 100% of the purchase price at auction for a property that would have been impossible to finance through FHA, due to issues with the property condition.

With a property in FHA-acceptable condition, you could make a downpayment as small as 3 1/2 percent of the purchase price. For people who understand the limitations of the 203k loans and properties needing relatively minor work, the 203k and FHA financing products can be productively combined. The details are important with 203k because licensed contractors have a window of time to complete renovations and there are limits on the amount of the 203 loan.

Please feel free to contact me for the names of experienced loan officers who understand the 203K loan process. For more information about the process of buying or selling property, please visit my blog.

Good luck in your search!
0 votes Thank Flag Link Thu Jan 21, 2010
203k loan is a good loan for Owner Occupants who need some funds to fix up a house.
0 votes Thank Flag Link Thu Jan 21, 2010
To me, the answer is whatever kind you want and feel you need. One good thing to try is to ask the lender foreclosing on the property. Many times you will find they have special incentive programs that include closing costs, waive appraisal, or even rate reductions.
Web Reference: http://www.ilmct.com
0 votes Thank Flag Link Wed Mar 26, 2008
Your downpayment can be as little as 3% with a FHA mortgage or as high as 20% with a conventional mortgage.
However, the first step is to get pre-qualified to purchase the home.
0 votes Thank Flag Link Sat Mar 8, 2008
Your downpayment depends on what type of loan you would be pre-approved for.

You may be able to put as little as 3% down with an FHA or CHFA. If the property needs work and you're going to live in it, you may qualify for some additional financing.

Get pre-approved in writing with a lender and submit the letter with your offer. The bank that owns the house may require you get pre-qualified through them - and maybe they'll cut you a break on the rate if you use them.

Remember that just because it's a foreclosure doesn't mean it's a great deal. Assuming you've seen the house, calculate your repairs, subtract that from your offer price which you've arrived at through looking at comparable sales in the area and doing a little analysis on where prices are headed.

Prices are still pretty stable in West Hartford. The bank may be willing to take pennies on the dollar but not all banks get that they need to move foreclosures off the market.
0 votes Thank Flag Link Sat Mar 8, 2008
Before making an offer to the bank holding the foreclosure, get a pre-qualification for a mortgage from your bank. So, when you make your offer to the foreclosing bank, they'll know that you're a serious buyer. Then, after you make your super-low-ball offer to the bank (at least it should be these days) and go through a couple of offer, counter-offer cycles - you pull this line out of your back pocket.

"Uh, wow - we're really close on the price. We're already pre-approved for a mortgage from my bank - but what kind of rate could you give us to close the gap."

Will it work? I don't know. But, there is blood in the streets and banks are carrying foreclosure portfolios that are gruesomely large.

Best of luck.
0 votes Thank Flag Link Fri Mar 7, 2008
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