How can I buy a foreclosure with nothing down?
I want to invest in a foreclosure. I have the income to support the payments, but don't want to put anything down.
5 Answers
- 1 decade agoFavorite Answer
You can't. The smallest downpayment is 3.5% with an FHA loan. With an FHA it can be a gift from a family or friend as long as you can show where it came from.
Source(s): first time home buyer and worked in Real Estate - 1 decade ago
One of the most common and popular ways to buy a pre-foreclosure property with no money down is via flipping or wholesaling. Basically, you offer to purchase a property for no money down and a long settlement period. During the settlement period, you look for a buyer. Ideally, you negotiate the sale to the buyer for a price significantly above what you are paying the home owner and for a shorter settlement period.
The end result is that you get paid for the property before you need to pay the home owner. You make a profit on the difference between what you are paid and what you must pay. Because you essentially transfer the money from the buyer to the home owner, you should not need to take out a loan.
Source(s): http://www.foreclosure.com/?rsp=26241 - Anonymous1 decade ago
There are absolutly no mortgage companies doing 100% financing right now. You would have to put down a minimum of at least 10%, if not more. 100% financing is a thing of the past because of all of the foreclosures.
Source(s): In the mortgage business - How do you think about the answers? You can sign in to vote the answer.
