Some of the
foreclosed properties are in good shapes
and the previous owners have kept the
houses
neat and clean with no structural
damages. If you find that type of home,
then that property will qualify.
However, some of the foreclosed homes are
not in good conditions and are in need of
major repairs before the loan closes. But, since most
of these
foreclosed homes are owned by banks or
other financial institutions and
they are
normally not in a position to repair.
Therefore, they want to sell the
home as is. One
way to buy these properties is to buy
them with cash, then repair, and refinance.
For this purpose, we offer home equity line of
credit on primary home if you have
enough equity ..
Down
Payments on foreclosed homes are treated
the same as in
regular purchases, depending on
your credit. The better your credit, the
lower the amount of down payment. With good credit, you could
get a loan with 5% down payment for a
primary home and with 10% down payment
for an investment property up to 2
units.
The amount of seller's
contribution toward the closing
costs and prepaid items
depends on the loan program
and the percentage of the
down payment. If the down
payment is between 0 and 5%,
then some programs limit the
seller's contribution to 3%,
but if the down payment is 10%
or more, the seller's
contribution could be up to
6%. However, it can not
exceed the actual closing
costs and prepaid items.
The amount of seller's
contribution toward closing
costs of the an investment
property is limited to 2% regardless of the down payment.
Property Tax
2 to 3 months
Hazard Insurance
14 months
Pre-paid Interest
1 to 25 days
when we pre-approve the
loan, we will give our
borrowers the estimated
pre-paid items along with
the closing costs within
$100 of the actual costs.
For more details, please
call 800-930-4243
How long will it
take to close a loan on a
foreclosed
home?
On our side, it takes about 2 to 3
weeks, if you provide all the required
documents in a timely manner. But, some of the banks or
financial institutions from which you
are buying a foreclosed home, require
some time for processing. On several
occasions, we had our documents ready,
but the seller was not ready. Specially,
in cases when you buy from HUD,
more time is needed for processing.
Can
I be Pre-approved?
Can I be pre approved to buy
foreclosed home?
yes
but pre-approval will be based on an acceptable
appraisal. If the appraiser or the inspector
recommends that certain items are need to be repaired,
then we will not be able to close the loan until the
appraiser re-inspects the property and re-issues a
satisfactory report.
A Few
Helpful Tips
Tip #1
Don't buy what you have been
qualified for. Buy what you can really
afford. After you close the loan, you are
the only one responsible for the payments,
not the loan officer.
Tip #2
If you are short of cash for
closing, ask the sellers if they are willing
to pay all or part of your closing costs.
Tip #3
Don't get Option Arm
Loans. Those could be disastrous and could
ruin your credit if you are not careful.
It is very important to
see in what area the property is
located. You may find two properties
on
the same street within 5 blocks of
each other, one selling for $120,000
but the other selling for twice as
much because they are in two
different subdivisions.
Inspect the Property
Inspect the
Property
Thanks to new technology, these days you could find answers
to most of your questions through Google! But,
unfortunately you will not be able to see how sound the
foundation of a foreclosed property is unless you
physically see the house! So, if you are not in
a position to see the
building, it is better to hire an inspector. A few
hundreds of dollars inspection fee will save you
big in the long run.
Back
to List
Loan on Commercial Property. Property
Loan on Commercial Property
State that we provide commercial
loans are: AL, AK, CO, CT, DE, GA,
ID, IN, IL, IA, KS, KY, LA, ME, MD,
MA, MI, MO, MT, NH, NC, NE,
NM, OH, OK, OR, PA, SC, TN, TX, UT,
VT, VA, WA, WV, WY
When
purchasing a foreclosed home, to find out
whether you are getting a good deal, add the cost of all the upgrading that you
are planning to do on the house to the purchase price. Then
compare to the price of a similar house that has been sold
in the same subdivision in the past twelve months.
Estimate the cost of
upgrading
Estimate the Cost of
Upgrading
it is a good idea to
estimate the cost of
upgrading item by
item before you
purchase the
property. If it is
your first time, you
may need to get some
advice from
the professionals or from
the people who have done
this before. Sometimes
the
cost of upgrading
comes much higher
than you had
anticipated!
