Getting a Mortgage on a Foreclosure/Bank Owned Home – CAN IT BE DONE???

Getting a Mortgage on a Lehigh Valley Foreclosure/Bank Owned Home – Can it be done??

Yes!  All Day long…The question is what type of mortgage can you get?  That is the question.

When dealing with any type of large purchase you should make sure that you are working with experienced professionals all the way around.

Real Estate Sales – Is a sales business but you should weed through those fast talking sales type personalities…and look for a Real Estate agent that works more like a Real Estate Consultant instead.

This is one of the largest purchases a person makes in their life – I do not care how much you spend but next to buying a car and getting married this is the 3rd most expensive investments and just as stressful as the rest.  Interview and ask questions – make sure you know who you are working with before you make a written commitment to work with them.

Okay – So, what kind of loans can you get on a Bank Owned/Foreclosure? Well, It Depends!

Let’s talk about Residential Owner Occupied properties in this Blog.

It depends on what type of loan you are looking for: The best way to think about this is, How much do you have saved to buy a home? Are you looking to purchase a home with the least amount of money out of pocket? Do you want to avoid paying mortgage insurance?

1) I always ask my buyer’s are you looking for the least out of pocket type of loan? If so, then there are a few options.  There is the typical FHA loan and this is a loan for owner occupied properties – with this loan you only need 3.5% down and if the property you want to purchase has a bad roof or mold in the basement or even the cooper piping has been ripped out – you can get an FHA 203K Rehab loan and you will be set.

2) If you are looking for purchase a home anywhere above North of Coplay, west of Macungie, North East including Bath and above than the property may be eligable for USDA Rural Housing loan which is 100% financing. This means you do not have to put anything down to get the loan like with FHA you must put 3.5% down to get the loan.

3) If you have saved money for your purchase and/or you are selling a home and plan on putting a significant amount of money down on your purchase then you best bet is a conventional loan – There are less restrictions on this type of loan but depending on the condition of the property you still may need a renovation loan.

4) Are you a First Time Home Buyer? Do you find it difficult to save money and will you have less then $5000 in savings/checking but you can pay your monthly obligations on time and you currently live in Lehigh County and want to purchase a home in Lehigh County -Depending on your Family household monthly income, you could qualify for a special program through the Neighborhood Housing Services of the Lehigh Valley – They work with 2 local mortgage companies that will help you with a 2nd loan that will give you 5% down and 6% closing costs necessary to purchase a home.  If you keep the home for 5 years – this loan will be forgiven!! There are also programs for Northampton counties but no loans are forgiven there.

Sometimes – repairs needed are unknow until you have a professional home inspector out to the property you plan on purchasing – When you make an offer on a property you typically have a minimum of 7 to 10 days to conduct due diligence or inspections to make sure there isn’t anything about the property that you do not accept – an unknown material defect like Mold, Roof, defective Heating, plumbing systems etc.  Basically, anything that is going to cost over $2000.00 total to replace/repair.

Looking for More Details: Click here Lehigh Valley Down payment and Closing cost assistance programs.

Hope this Blog was helpfu.

Buying Lehigh Valley Foreclosed Homes – Bank Owned Homes & Getting a Loan to Buy them

Buying Lehigh Valley Foreclosed Homes & Bank Owned Homes – Getting a Loan to  Buy & maybe Rehab them.

Do you want a GREAT DEAL? Are you interested in finding a home that needs work but wonder how you can get a loan on the property? Then Rehab loans are for you. Learn Here.

Times have changed….we are digging our self out of a Recession and the way MOST are buying homes has also changed.

CURRENT FACTS

1) MOST Home Buyers are going with an FHA Loan where you only need 3.5% Down as ofToday.not allow any major home repairs and this will make it impossible for home buyers to purchase the below properties.

2) The problem with the Standard FHA Loan is there is an FHA appraisal required that will

SO HOW CAN YOU BUY THE FOLLOWING TYPES OF PROPERTIES THEN?????

Our Current Lehigh Valley Real Estate Market is filled with the following types of homes.
Homes that Need “TLC”

“Handman Specials”
“Investor Specials”
“Foreclosed Properties – Enter at your own Risk” know as Bank Owned Homes
“Vacant & Occupied Short Sales”

The way to purchase homes like this IS the best KEPT secret in THE Lehigh Valley Area.

Now, this type of Financing is NOT something you can do on your own…you need the guidance of professional Mortgage Renovation specialists and a Real Estate Agent “Buyer Agent”  who also works with Home Buyer’s interested in purchasing Distressed – Handyman Specials, Foreclosures and walking you through the entire process of purchasing a home and getting a rehab loan that fits your needs.

NOTE: NOT EVERY MORTGAGE COMPANY WORKS WITH THESE PROGRAMS
NOTE: NOT EVERY REAL ESTATE AGENT IS INTERESTED IN HELPING BUYER’S WITH THESE PROGRAMS.
NOTE: IT IS HARD TO FIND INFORMATION ON THESE PROGRAMS AS IT IS NOT QUICK AND EASY TO DO…BUT WORTH THE TIME AND EFFORT. That is why you only found my Blog on the topic.

NOTE: Depending on the Home you are interested in purchasing and the location of the home will depend on what type of loans are availalbe to you.

But, here are some of the Programs made for these types of homes that need “TLC”

1) FHA 203K Streamline – Rehab Loans – smallier repairs up to about $20,000.00
2) FHA 203K Standard – Rehab Loans – Larger repairs – You can do complete rehab inside and out

3) Also, if the home is a Foreclosured Home/Bank Owned Home and THE Owners name is Fannie Mae – then it may qualify for a HomPath Mortgage (currently loan without Rehab is available) There is a national bank that does the rehab loan for this also. See My Blog on HomePath Mortgage Loans.

Make sure the Loan Officers and Real Estate Agent you are working with Specialize in Foreclosures and Rehab loans or they will have no clue and/or they may not be interested in finding a clue.

In the Lehigh Valley – Wells Fargo is the only player for these loans right now…and you need to make sure the person you speak to at Wells Fargo specializes in these loans.  I have the contacts…just shoot me an email.