how to buy a foreclosure home when the home can not be finance by a morgage because is not move in ready?

Asked by Delia Sanchez, Houston, TX Thu Jan 31, 2013

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, ,
Fri Feb 1, 2013
Look into the FHA 203(k) loan.
Not all lenders have it....
0 votes
Suzanne MacD…, Agent, Succasunna, NJ
Thu Jan 31, 2013
FHA 203K loan, that's the answer. Talk to your lender and if they are not familiar with this product, find a different lender. The FHA 203K loan allows you to purchase both the home and finance the needed repairs and renovations. It's a fabulous vehicle for people looking to do what you are doing, buying a house that needs work and building a little 'sweat equity'. You've made a good decision. Good Luck!
1 vote
, ,
Thu Jan 31, 2013
We offer FHA 203K rehab financing. There are two types, the streamline for repairs up to $35K, and the full 203K for more extensive repairs. Let me know if you need more information. Thanks.

Anna Maria Durr, NMLS 266699, TREC 596662
Codemark Financial, Loan Marketing/Production Manager
2626 Richmond Ave., Houston, Texas 77098
0 votes
M.E. Mollie…, , Houston, TX
Thu Jan 31, 2013
Good evening Delia,

You will need to have cash with proof of funds to accompany the offer.

Good Luck
0 votes
Al Geffon, Agent, Houston, TX
Thu Jan 31, 2013
Delia ...

FHA 203K loans have several restrictions. Can you tell me the price of the property? Do you have a contract ... have you even agreed on a deal? Is this a home to be auctioned (if so, it must be a cash sale)? Do you have a sufficient down payment? Purchasing a foreclosure is not the slam-dunk many people believe it to be, and often isn't a bargain at all. Proceed with caution. If I may be of further assistance, please contact me. Best of luck.

Al Geffon
(713) 213-6350
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0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Jan 31, 2013
Either you pay cash or perhaps you can get a 203k loan depending on the value of the house and the work that needs to be done and the after repaired value.

Ask your realtor or lender if you qualify for this type of loan.
0 votes
Mark McNitt, Agent, Houston, TX
Thu Jan 31, 2013

If the foreclosure is from a bank, they might finance it. Typically a home in poor shape will not pass FHA/VA inspections for safety. Most lenders will not work with you as the home might not pass their inspections for appraisal purposes.

I would bet they are looking for a cash sale. If it has been sitting there awhile, give them a cash offer...even if it is very small. You never know what they might take.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
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