It is very easy to buy a foreclosure.... but it does depend on what shape the house is in. There are
different type of loans - some allow money for repairs, some don't! Some require 3.5% down and
some are a 100% loans (with no down payments). Some homepaths homes allow you to buy the
house AS IS. Some HUD homes only require $100.00 down. Call me and we can talk about
what your options....... but you can buy houses for $30k - $50k less than 2006 pricing. Have a great day!
770-789-2401 (cell - I answer my phone until 10pm)
It all depends on the lender. Please talk to a professional. Different lenders have different programs and excellent credit is not necessarily a requirement as the media and misinformed people would lead you to believe. I am not saying that there is a lot of money available for high risk but there is money available.
One thing people should look at when buying a foreclosed property is that these are not always "bargains." Many you have to take 'as is' which can cost a lot of money down the road. Also just because you find a lender that will provide you funding due to your low credit score your interest rate may be considerably higher which could still mean you are paying too much for the house. Think about all of the financial angles before making any purchase.
These are 2 separate questions:
As for getting a loan so you can buy anything - Theoretically, your credit score must be 580. You'll be hard pressed to get a loan if your credit score is less than 620, and that is usually a govt loan.
As to buying foreclosures... read the posts below.
I know of a local lender that will consider potential borrowers with as low as a 580 credit score. She also does a lot of work with down payment assistance programs for first time home buyers (see link below). Other lenders are requiring a minimum 620 credit score. Once approved, it's largely just a matter of you and your agent presenting an acceptable contract to the owner.
Many foreclosed properties are going into multiple bids. Once the bank owns the property it is a simple matter of making an offer, the bank (owner of the property) accepting the offer just as in any other transaction. The only difference is that you may have several bidders or contracts on the property. The terms of your contract will determine how easy it is to actually end up with the contract. Many people are going in with cash offers on foreclosures. As to the credit score that would be determined by the lender. Check with your lender, make sure you qualify and for what amount. This should be the first step no matter whether you are looking to buy a foreclosure or a new property. Know what you can afford. The downpayment and settlement costs are also costs that many buyers do not take into consideration but by being qualified by a lender you will know most of these costs and expenses up front.