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FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

Contributor

FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

I am looking to put an offer in tomorrow on a foreclosed home.  I am already pre-approved for the FHA loan.

 

Does anyone know if there are any potential issues with buying a foreclosed home with an FHA loan?  I'm a first time home buyer and I need all the advice I can get!  Smiley Happy

 

 

Thanks in advance!

Message 1 of 6
5 REPLIES
New Contributor

Re: FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

Yes I'm curious as well most have told me it could be a long process and may need a fha 203k loan if work is needed.
Message 2 of 6
Moderator Emeritus

Re: FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

As long as the house passes the required inspections you should be fine. If the house doesn't pass you.may be looking at a 203k loan to do whatever repairs are required.

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Message 3 of 6
Valued Contributor

Re: FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

It's fine as long as the house is in decent shape. FHA inspections get blown way way out of proportion. As long as the house is in decent shape your fine. I bought a forclosure that was built in 1979 with an FHA. All I had to do was install some GFI outlets. If you manage to find one that is owned by HUD many of those have a $100 down payment special, I took advantage of that.
Message 4 of 6
Contributor

Re: FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

Thanks for the advice! 

 

I live in PA and checked out the $100 down payment program, it's been cancelled here.  Smiley Sad

 

I was also told by an agent that HUD homes will only go 15% below the asking price.  Does anyone know if that's true?

 

Thanks!

Message 5 of 6
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Contributor

Re: FHA Loan to purchase a Foreclosed home. Need advice!!!!!!

I got a FHA loan on a HUD home that was asking price of $73,000 and got it for $61,500 so that is more then 15% off the asking

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