FHA loans and Foreclosures?
Just a general question here...
FHA loans often require contingencies for home inspections. I also hear that foreclosures are often "as is" and the bank won't accept contingencies for home inspections. Is it tough to buy a foreclosure with an FHA because of this?
- Expert8675309Lv 71 decade agoFavorite Answer
FHA loans DO NOT require an inspection and NEVER have.
They don't even require a termite inspection anymore, though there is no way I would buy a home without one.
Appraisals are not inspections. Appraisals used to have something called a VC sheet, but those haven't been used in about 2 years.
So yes, you can buy a foreclosure with an FHA loan. The underwriter will require interior photos of the home on the appraisal (and this is standard for all foreclosures in the lending industry).
Your real issue: Getting it closed on time.Source(s): former FHA mortgage underwriter
- greenoughLv 43 years ago
because FHA regulations are consistently changing you're in a position to be approved for the FHA loan. the sole question is while the foreclosures occured. If it became into longer than 3 yrs in the past then there's a greater physically powerful risk as oppose to below 3 yrs in the past. A foreclosures can stay on the books longer than you think of relying on what style of foreclosures it easily became into.
- FRANKLv 51 decade ago
You can finance foreclosure property with FHA loan. Timing is usually an issue, so it is a good idea to begin the pre-qualification process before you enter a contract.