Can I use an FHA loan to purchase a foreclosure?

We found a number of foreclosures that are well within the amount we have been approved for with an FHA loan. We are just trying to determine if we can purchase them using an FHA loan and also being first time buyers.

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  • Anonymous
    1 decade ago
    Best Answer

    bank owned yeah...............bidding on the front steps I don't think so.......have to pay same day.

    Open Book Advisors™

    Source(s): Wholesale Mortgage Broker http://www.aimwithfocus.com
  • 1 decade ago

    Yes, on some foreclosures they will accept FHA. It will depend on each individual home and bank who owns the home. Most foreclosures are on the MLS( Multiple Listing Service) and an agent can tell you by looking at their MLS listing detail sheet if that particular home will take FHA. There are also rehab loans on some FHA called 203 K. Here is a link that goes into a bit of detail in regards to it. http://www.hud.gov/offices/hsg/sfh/203k/203kabou.c...

    Just be careful many first time buyers tend to think foreclosures are all great deals and the majority of them really aren't. The homes have been trashed or abused and by the time you've spent your time and energy you could have bought another home for a tad bit more and a lot less headache. Also, many banks are not budging on prices much. Good Luck!

    Source(s): I'm a Realtor
  • 1 decade ago

    I believe you can as long as there is no deferred maintenance on the house. FHA also has a rehab loan if the house needs some work. I would call your mortgage broker. They can answer all of your questions.

  • Anonymous
    1 decade ago

    Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing office<!--in the county in which you reside.If these offices don't have the programs you are seeking they will be able to tell you what agency in their jurisdiction has them.

    http://badcredits.awardspace.com/homebuyerprogram....

    Once you have located the first time home buyers program and who operate it, that agency normally have a list of lenders, banks-->mortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

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  • Anonymous
    1 decade ago

    yes you can .....FHA can be used on any SFR, townhomes, etc.

    you can use the 203k to rehab the home...with only 2.25% down

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