If you are keeping up with our market you are probably aware of the increase in foreclosed homes in our area. If you are looking to purchase a home this year, this may be an opportunity for you. There are several different types of foreclosures in our area:
FHA-HUD FORECLOSURES- www.firstpreston.com find HUD foreclosures on this website. Most of these foreclosures can be financed on an FHA loan with $100 downpayment (instead of the usual 3.5% down). You will have some closing costs, however HUD will pay for a portion of these. If you purchase a HUD property be prepared to wait 45=60 days to sign final docs.
VA FORECLOSURES- these are homes that veterans have purchased and weren't able to keep up with their monthly payments. VA will finance most of these homes with NO down payment. You will have some closing costs involved in the purchase. Be prepared to wait 60 to 90 days to sign final docs.
FANNIE MAE AND FREDDIE MAC FORECLOSURES - These are conventional loans that have gone into foreclosure...remember the bailout?...after being bailed out, we expected Fannie Mae and Freddie Mac to work with homeowners that were having trouble keeping up with their house payments but unfortunately, they didn't...these foreclosures are usually on a higher priced homes.
QUALIFYING TO PURCHASE A FORECLOSURE is no different from purchasing any other house. You have to prequalify with a lender to make an offer. You must have a good credit score ( 620+). You need to have good job stability and show that you have enough money to pay for any costs in the purchase.
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