What type of loan can be used towards a bank owned property?

Asked by Vicki Ohlert, Miami County, OH Sat Jul 7, 2007

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7
Artur Urbans…, Agent, Burlingame, CA
Sat Jul 7, 2007
BEST ANSWER
Vicki, you certainly can use any so called conventional loan, unless a bank has specific requirements. I don't believe that is often the case. More likely a bank might require a minimum down payment.
Web Reference:  http://www.cimpler.com
1 vote
Bruce Lynn, Agent, Coppell, TX
Sun Jul 8, 2007
Typically you can use any type of financing you qualify for. The exception might be if the home needs repairs. Some loans might require that the repairs be completed before the loan is closed. You should discuss this with your loan officer first. There may be some loans that also allow for repairs such as the HUD 403k loans. Make sure your loan officer is experienced doing this loans though. If not get them to refer you to someone who is. They can be tricky to complete for the novice.
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2 votes
Kim Chitwood, Agent, Fayetteville, GA
Sat Jul 28, 2007
Most of the time in GA, our bank owned property says "Cash and Conventional" only. Some banks want the buyer pre-approved through them as well.
1 vote
John Youker,…, , Beavercreek, OH
Sat Jul 28, 2007
Most banks will let you know what type of finacing they will accept on a particular property - based off of the condition of the property. A distressed property will have more trouble getting approved to go FHA or VA, however, there are some FHA loan products that are "rehab" loans (HUD 403k), consult a local loan officer who is familiar with these products to find more information.

Some banks will offer some sort of "express path" financing if you finance through them to purchase the property as well, again, check with the agent listing the home or the bank directly, if it is not currently listed.

I hope this helps.
Web Reference:  http://www.SWOhioRealty.com
1 vote
Darin J. Dug…, , Saint Petersburg, FL
Tue Jul 10, 2007
The banks accept most types of loans. As Donna mentioned most require a prequalification or preapproval letter with the offer or financial statment to prove credit worthiness. The stronger buyer you present to the bank the better your chances at getting the property.

Good Luck.
1 vote
Cindy Buroker, Agent, Troy, OH
Fri May 3, 2013
It all depends on the condition of the property. Even if it is a total rehab then you can always look at the option of a FHA 203K, either Streamline or Full, depending on the amount of the repairs. Some banks are more flexible on terms then others but that is something that can be discussed upfront before viewing a property. Thank you for your inquiry.
0 votes
Donna Thacker, , Oxford and West Chester, Ohio
Mon Jul 9, 2007
You can use any kind of loan out there as long as you qualify for the loan and the property qualifies for the loan. Bank owned properties almost always require a preapproval letter from the lender. If the property is in questionable shape you would probably have to pay cash or get a conventional loan product.
0 votes
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