Interested in a foreclosure property (foreclosed, mortgage, mortgage, price)

[AK-Cathy]

For the financing gurus out there:

We are retired and in the process of moving from one state to another. We ran across a foreclosed beach house that we would like to make our principal residence but it's a wreck right now but nothing outside of our "wheelhouse" to renovate. It is eligible for a FNMA Homepath Renovation mortgage but for many reasons we don't want to deal with the restrictions and apron strings that FNMA has on this program.

To further complicate matters we have two homes in other states, one in AK (that we will sell this summer/fall) another near aging family in the midwest. We have zero debt, good steady income but would rather not wipe out (mostly) our cash reserves making a 20% down payment with closing. We are too young to touch our 401Ks. Is there anything out there for us or do we let this one go by? TIA.

[RoyceofRE]

You could potentially talk to a hard money lender or interim financing company, that qualify the house and not you personally.

However, they will typically only finance up to 70% of the purchase price and have higher rates.

If you are potentially wiping out your cash reserves just with a down payment, buying a beach house that needs repair probably isn't the best idea right now until you get the other home sold. Once that's done, could you pay cash then and refinance it later?

I'd try to talk to a loan officer that works at a brokerage as well as a financial adviser that can collectively give you options and help you formulate a game plan.

Sounds like you guys are in a good position but I'd talk to your "finance team" before you make this step.

Hope this helps, best of luck.