Do you have to pay cash to purchase a foreclosed home?
(0) | asked by: Denise Michael | share | 15 months ago | Report
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Great question! It all depends on what your lender says after the inspection. If the home passes the inspection you may be approved for a loan to purchase! Good luck!
Much of it depends on the condition of the homes, and whether or not it will qualify for financing. In Florida, if a home does not successfully pass a 4-point inspection, you cannot get insurance, and therefore, you cannot get the financing.
Not necessarily. The listing agent usually specifies what types of financing if any will be considered by the seller. And that info is listed in the MLS description.
Hi Denise, not at all. If you have a lender who has pre-qualified you and given you a letter, you can put in an offer on a foreclosed home just like any other buyer. The challenge is finding a foreclosure. I think they are so unbelievably overrated after transacting on over 20 of them....but suit yourself.
Not usually. I'm finding some banks will now tidy up a home with new paint and carpet in order to sell it and may entertain a mortgage.
Denise, the answer to that is contingent on how the property is listed. Most often than not, a foreclosed home is not in the condition to be sold under an FHA mortgage, so the bank may request cash, or conventional mortgage only. There are times when you may be able to offer a 203k mortgage. The best resource would be the specific property in question, a great Realtor and a great loan officer. Good luck in you venture and if I can be of any assistance please do reach out to me.
Property will be sold for outstanding mortgage balance owed to foreclosing mortgage holder -- this can be a low price for the property. Cash payment requirements reduce competition.
Just to add the 203k rehab loan has a streamlined application. But the application process for the 203k loan is tedious. You'll need a contractor approved bid and contract. Keep the rehab cost under 35,000.00 and the streamlined process is a quicker approval.
Not always. It is usually tough to obtain financing is the home needs extensive rehab. Additionally, mortgages tend to take a few weeks to close whereas most foreclosure purchases happen a bit quicker than that. Hope this helps.
Yes, you can finance foreclosed homes. There are many lenders that will work with foreclosed homes. When financing, the condition of the property will need to be taken into consideration. For a property that is in need of repair, there are special loans available such as the FHA 203K loans that are designed to meet this type of financing need. If you are looking for foreclosed properties in Central Florida I would be happy to help!
No. However, to obtain financing, condition matters. If the needed repairs are basically cosmetic the financing is much easier. Rhonda Cox Ocala, FL
You can purchase a foreclosed home with a mortgage. The condition of the home may factor in if you are going to obtain a VA, FHA or USDA loan.
Many foreclosures can be financed. The problem for a large percentage of foreclosures is the work that needs to be completed often to make the property habitable. That creates a problem for many types of loans. That is where specialist can help you. I am an FHA203K specialist and can help you obtain an FHA 203K loan to make a property that needs repairs a good value for your family. There are still some good values out there to be purchased, they need work, but does the asking price of the home in view of the appraisals in the area, allow room for improvements and repairs? That's where we can help. Contact an FHA203 specialist.
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No though many loans will not lend on properties that need work. I make loans on foreclosures all the time
No. Most of the time you can use financing when buying a home, especially if it is offered through your local MLS system. The realtor you are working with can help explain your options. If you do not have a local realtor, I'd be happy to help in any way I can. Thanks, and good luck!
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