How To Get Money To Buy Foreclosed Homes 【2025-2027】

: In pre-foreclosure or short-sale scenarios, you may be able to negotiate for the current owner to "act as the bank," though this is rarer with properties already owned by a bank (REOs). Quick Comparison of Financing Options Typical Down Payment Key Requirement FHA 203(k) Fixer-uppers (Owner) Licensed contractor bids Conventional Move-in ready REOs High credit score Hard Money Rapid auction buys High property equity HomePath First-time buyers Education course

Are you looking to buy a foreclosure as your or as an investment property ?

If you plan to live in the home as your primary residence, these programs offer flexible credit requirements and low down payments.

: Offers special financing on Freddie Mac-owned foreclosures, often waiving the requirement for mortgage insurance, which can save thousands over time.

: These are short-term, asset-based loans from private lenders. They close quickly (often in days) but come with high interest rates (10%–15%) and require a significant down payment (20%–35%).

: Borrowing from friends, family, or business partners is a common way to avoid strict bank regulations and negotiate flexible repayment terms. 3. Alternative Strategies

: Targeted at first-time buyers, this program provides up to 3% closing cost assistance for Fannie Mae-owned properties after completing a required education course.