Can I have a REO and 100% financing?

I’ve just discovered that the house across the street where I live an REO bank. I have $ 12,000 cash and $ 32,000 in a 401K, but I would buy this multi-bank reo with a 100% financing. Is it still possible or do I have to write something. I would this as a good buy placement.Réponse

by Amanda H
I think is a little harder do you think REPO.Financement 100% to obtain an investment property. Only one bank can tell you.

100% Financing

This entry was posted by admin on July 5, 2011 at 6:56 pm, and is filed under finance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

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#1 written by godged 7 months ago

Highly unlikely you will be able to get 100% financing on an investment property. Most lenders want 10% on an investment property.

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#2 written by jodann7spears 7 months ago

Being financed for 100% of the purchase price does NOT neccessarly mean “100% financing”. Let me explain; most ORE houses appraise higher than the bank’s sale price. If you can have the house apprasied and it, for example, is valued at $ 100,000 and the bank’s sale price is $ 80,000, then you are really seeking an 80% loan and most any bank will accept a loan with and 80% LTV (loan-to-value) and the cherry on top is that you would have equity.

This all depends on the appraisal and most sellers will do a “depending on appraisal” sale contract.

PS: Don’t touch that 401k…the bank can’t take a lien on it and the withdraw penalty is huge.

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#3 written by Kerry 7 months ago

In order to purchase an Real Estate Owned (REO) Bank Owned Property you will need to obtain a mortgage from a traditional mortgage lender or even the Bank that holds this property.

With the lending conditions the way they are, depending on your credit history etc. I would say 100% financing is no longer an option in the US anymore. Particularly with Multi-Family properties, you will more than likely be required to put anywhere from 20-30% down on this property.

The benefit though with the REO if you can make it happen, is that hopefully you will get it at a discounted value.

GOOD LUCK!

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#4 written by Jerry BO 7 months ago

Just don’t pay 100% “interest.” on the financing. <}:-})

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