Can I purchase a foreclosure or government seized home with a F.H.A. loan?
Question:
Answer:
Yes, most listings will state "insurable", "insurable with escrow" or "non-insurable." This refers to whether or not you can get an FHA loan. Insurable obviously means you can get an FHA loan. Insurable with escrow means that you will have to escrow money and make repairs before occupying the premises and non-insurable means that the home needs too many repairs to obtain a standard FHA loan. Even if a home is non-insurable, you can get an FHA 203K loan which provides for repairs. A 203K loan is much more difficult to obtain and requires a lot of paperwork and oversight.
If your credit score is high enough (generally 650 or higher), you can get a conventional loan for 100% which will offer much more flexibility. Talk to a mortgage broker who works with several companies for the most options.
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