Can you use FHA Loan for a short sale or foreclosed home?

[Anonymous]

Can you use FHA Loan for a short sale or foreclosed home?

I live in Phoenix, AZ there are lots of great deals right now but mostly in short sales and foreclosed homes. I cant get conventional loan because of poor credit score but I was hoping FHA.

[Anonymous]

Yes. FHA is the type of lending. It has nothing to do with what kind of property condition you buy.

[treschic]

i have a similar question too.  especially since some homes i've noticed specifically say "conventional financing only" they state that they won't accept FHA or VA loans.  its not on alot of homes, but i have seen some short-sales and foreclosure homes with this notation.

[Anonymous]

If that's all the seller accepts- conventional then you are out of luck. It still doesn't hurt if you get an approval letter from the bank. They will treat you as a cash buyer which may work out in your favor.

[Anonymous]

I have seen that too. Why would the seller care if conventional or FHA is you have pre-approval letter in hand?

I understand if you are not pre-approved and you are going FHA could take 45 days.

[Anonymous]

There are a few more hoops to jump through for the sellers with FHA and VA loans; not as many as there once were but they do exsist