I'm looking to purchase a foreclosed property that's currently for sale. The price is $40k firm. Not a penny lower. The house as it stands right now is in terrible shape. It's pretty much inhabitable. However, I only want this property for the land itself. In the future, I would tear down the existing house and have a new one built on it. It's a lot of land for the price and I love the neighborhood. I did all my due diligence and the property checks out fine.
The problem is, I don't have $40k available to purchase the property outright. I'm not sure how I should proceed in getting a loan for this property. Being that it's a foreclosure, and inhabitable, and the fact I don't intend to fix it up, wouldn't I have trouble getting a traditional mortgage on this property?
I do have strong credit profiles with FICO scores around 810-820, so getting credit or loans shouldn't be a problem.
What would be the best avenue to go in order to acquire funding for this property with the lowest interest and lowest monthly payments possible? I could perhaps front $20-25k. But I'd still need to come up with the other $20-25k.
I'm guessing you mean "uninhabitable" as in "not fit to live in". "Habitable" and "inhabitable" both mean "fit to live in".
It can be very difficult to get a loan for what what a lender might not value at any more than raw land. Can you think of any friends or family you could partner with who would have a use for the land? Of course, owning real estate with other people can be very messy and unpleasant, so that's not without risks.
Do you expect to face competing bidders who have all cash? If the foreclosing lender wants to sell quickly, a cash buyer willing to pay $40k may win over someone willing to pay $45k but who needs financing.
Your best bet would be a simple signature loan.
Start with your current bank.