do you have to have good credit to purchase a foreclosed home? and do you need to go through a bank to make the purchase if you have the down payment?
(0) | asked by: Colette Francisco | share | 57 months ago | Report
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Hi! I reviewed the anwers you've gotten so far and I felt I could offer you some more insight as a lender. Answer: It depends on what type of home you're looking for. For example, if you're looking at a home that's listed on the homepath website, this site and you're looking to occupy the property as your primary residence then you'd be looking at needing 5% down payment (plus closing costs if the seller won't pay) AND a score of 640 or better, there's no mortgage insurance on that loan. OR, if you plan to occupy the property and you're looking at FHA financing then you'd need 530+, 580+, 620+ and 640+ with varying down payment amounts. The lower the score, more reserves and more down payment may be required. If you're paying cash, then scores do not matter and all it takes is to contact a local realtor who has the time to work with you. You'd need to contact a mortgage banker or broker to open the financing options I suggested, usually the big banks do not offer the programs I suggested. For all of the professionals here you can click their name/site or the "contact me" to find out what they offer and who they work for and/or licensing information. Good Luck! Kim
Repos trend to want a pre-qualifying letter with offers ....
No, there are lenders who provide loans to people with bad credit. You can expect to have a substantial down payment (30% and up) and your interest rate will be double the bank rates or greater. But is it possible to buy with bad credit.
Yes and the numbers better be above 630......much better to be in the 700's.
Yes, and yes. Unless you are going to be paying cash for the home you will have to have someone give you a loan to purchase the property.
To answer your last question first, you can use a bank, credit union, mortgage broker or mortgage banker to finance a home. The credit scores required vary depending upon the loan program you choose, not the type of property necessarily. Generally 640 is what I've found to be the minimum middle score required.
Yes you do have to have good credit to purchase a foreclosed home if you need a loan to purchase the home. Having a down payment is a great start! Please contact me if I may be of any assistance with your real estate needs.
Hello, If you have the down payment but not the total amount needed to purchase then yes you would have to apply for a loan. You will need to qualify for a loan with a lender whether it be a bank or a mortgage company. I can refer you to a couple of lenders in the area that would be happy to help you. Let me know if you have further questions. Mary Locy
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