Home Buying in 33626>Question Details

Nboat28, Home Buyer in 33626

do you need a down payment on a foreclosure home?

Asked by Nboat28, 33626 Wed Mar 9, 2011

Help the community by answering this question:



You should provide an earnest deposit when making a bid on a REO (home which has foreclosed). This shows the seller that you are serious and want to be in the game. It does not have to be a large amount. Next depending upon the type of financing available to you to purchase the home there will usually be a down payment requirement. FHA 3%, Conventional 10-20%, Homepath 0% if the home is qualified for this program.

Best of luck to you,

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
Web Reference: http://homesales411.com
1 vote Thank Flag Link Wed Mar 9, 2011
If you find a VA owned foreclosed home (not any available right now in Tampa), there is VA Vendee financing that would allow zero down even if you are not a Veteran.

Also as mentioned earlier if you and the property qualifies, there is the USDA mortgage with zero down required.

All the best,
Alma Rose Kee, PA
Future Home Realty, Inc.
13045 W Linebaugh Ave
Tampa, FL 33626
PS you're welcome to sign up for a free listingbook account on my website.
Web Reference: http://www.SoldOnTampa.com
0 votes Thank Flag Link Fri Apr 1, 2011
Hello... Pretty much any home where you are obtaining a loan will require a down payment except for VA. If you haven't spoken with a Bank or Mortgage Professional, you may want to do so first. They will be able to tell you what type of loan you qualify for and the specific requirements. Let us know if we can help.
0 votes Thank Flag Link Thu Mar 31, 2011
Any mortgage is going to require a downpayment.
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Again,

If you want to buy a foreclosure or a fixer upper, you can get an FHA 203K mortgage that will make the upgrades/repairs you want after closing. This is a very good option on a bank owned because nowadays you can actually get these closed in 30 days. It used to take 60 days but 30 days is now possible if you use approved contractors, i.e. HomeDepot or Lowes.

Hope this helps.

All my best,
Alma Rose Kee, PA
Future Home Realty
13045 W. Linebaugh Ave.
Tampa, FL 33626
0 votes Thank Flag Link Thu Mar 17, 2011
With any property it requires a down payment refer your questions to your mortgage broker and Realtor

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Mar 16, 2011
Hey there - Back up - don't go shopping yet. Find a good Buyers' agent and get pre-qualified!!

On a VA loan, if you are a qualified Veteran, you do not need a down payment- however you need to make an escrow deposit. On a USDA loan,,,,,,also a 100% loan., and you will need an escrow deposit. There are other loan programs where you can get a gift letter from a relative for the down payment--and you will need an escrow deposit..

Bank Owned (foreclosure) homes are USUALLY sold as is. Very few times have I been able to get repairs out of a seller/Bank. Here's the Catch 22 - most lenders/programs will require repairs. Who's going to pay for them.

I don't want to discourage you from trying to get a great buy on a foreclosed home - they are out there, some in really good condition. So, follow that path if that is your desire , and explain to your realtor you need this requirement,. Now granted some of these homes do not have utilities on, but some do. Your Realtor can flip the air on to see if it is cooling - and you can certainly eyeball the shingles to see if they are curling and get a decent idea if the house is a good candidate for an offer. HOWEVER, make sure in your offer, you include a clause "contingent upon buyers approval of home inspection within x days" to protect yourself. Your Realtor will explain all of this to you.

Short sales can take much longer to close. Standard seller conventional listings may be a good place to shop, as the seller may very well comply with your repair request, and possibly even pay your closing costs.

If you need a Realtor, feel free to call me.

Phyllis Crosby, Realtor, GRI
(813)886-2356 DIRECT

0 votes Thank Flag Link Wed Mar 16, 2011
There are assistant programs if you are a first time home buyer and meet the income criteria. If you look outside of the 33626 area you may be able to obtain a USDA Rural Loan where there is no down payment.

Just some options for you to consider.

Phil Fowler
Charles Rutenberg Realty
Web Reference: http://www.PhilFowler.com
0 votes Thank Flag Link Wed Mar 9, 2011

I am thinking that you mean an Escrow deposit, or good faith money?

Yes, a contract offer is not a contract without an escrow deposit. And the more it is, the better the seller will feel about your intentions to close. The more you have at risk, the more comfortable the seller is about removing their home from marketing.

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Wed Mar 9, 2011

Yes, a down payment is normally required to buy a "foreclosure home" ~ The down payment is made up in two parts. The first part is the "DEPOSIT" usually a token amount to show "GOOD FAITH" they call it an EARNEST MONEY DEPOSIT". The second part of the down payment would bring the TOTAL deposit to a certain amount e.g. 10% or 3.5% or 5%, of the Purchase Price.

There is such a thing as a no money down deal too. In this case you or any "buyer" put no money down and make arrangements for future monthly payments or some other kind of plan.

The thing to do, in my opinion.... is to find a LOCAL PRO ~ Real Estate Agent or Broker AND a Mortgage Broker or Lender... A professional can answer your questions and guide you to a stress-free purchase.

http://goo.gl/JUl3W ✔≈ Like us on faceßook ≈✔

0 votes Thank Flag Link Wed Mar 9, 2011
As far as a downpayment, you may be able to buy a HUD owned foreclosed home for as little as $100 down!

On most other bank owned listings you will very likely be required to deposit a "good faith" amount of at least $1,000. FHA financing will require you to put 3.5% of the sale price down. On a $100k property that is $3,500 downpayment.

Hope this helps.

0 votes Thank Flag Link Wed Mar 9, 2011
You will need a deposit to hold the home.

In some areas 100% financing is available either through Homepath or USDA.
0 votes Thank Flag Link Wed Mar 9, 2011
There is no such thing as a foreclosure home. The home is either in foreclosure or it is not and it could have been foreclosed. Once it has been foreclosed someone else now owns it and often it is the bank that buys it at the foreclosure auction on the courthouse steps. Once the bank owns it it is now a bank owned home or foreclosed home or REO (which means Real Estate Owned) or the same as a bank owned home.

As long as we are not talking about a foreclosure auction, yes, you need a down payment unless you are going to pay cash. Your lender will want to see a downpayment and 20% is not uncommon.
0 votes Thank Flag Link Wed Mar 9, 2011
Initially when making an offer a deposit is not necessary for your agent to submit an offer. But some companies give more credance to an offer submitted with a deposit.
0 votes Thank Flag Link Wed Mar 9, 2011
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