Buying a foreclosed home is not really any different than purchasing from an individual, with some exceptions. Unless specifically stated in MLS, the asset enitity website, or or other marketing advertising a home can be "generally" financed with any loan package.
When purchasing a foreclosure it is best to purchase via either cash or conventional financing. In-house bank loans are like conventional loans and are usually used by investors but they are shorter in term and higher in the interest rate.
With the repair requirement guidelines of FHA, and especially VA, itis best to avoid these financing types. Normally an asset entity is selling the home As-Is and do not want to do any repairs that might be required for loan approval with FHA or VA. One exception is the FHA 230k loan which is a rehab styled loan. The repair cost is financed as part of the purchase price and the repairs are performed "after" the transaction is closed. The finance amount is then based on the "repaired" fair market value.
Answer Submitted on Mon, Dec 8 2008
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