Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We may be relocating, 2 impending offers in 2 different states.
My Questions Are: If we move to Florida and wish to purchase a Forclosure;
1. Will banks give a loan in this FL market? (Excellent Credit and 20% down)
2. How difficult is obtaining a loan in an already flooded forclosure market?
3. Would there be an increased interest rate due to market?
If I were the lending institution; I would see this market as a time bomb and not transact business in the FL market. Unless, the bank who holds the foreclosed note desires to re-coop some of the loss and issue a lower risk, secured mortgage to a new buyer.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,845,174 times
Reputation: 958
There is a small price hit for declining markets with most lenders. It is a very minor hit and the rate you get, dependent on credit, property type, loan to value, etc. will still be very competitive. A bank will give a loan in FL, and given what you have said here it should not be too difficult at all, provided you do qualify based on some other guidelines.
You will not have a problem finding a mortgage loan here in FL. The only foreclosure properties you may have a problem with would be in condo complexes that used to be apartments, and are owned more than 50% by investors. The market is certainly not the time bomb as you described (at least not here in Orlando) and mortgage loans are still some of the most secure/safe loans a bank makes.
With 20% down, good credit, and a normal DTI ratio, your rates should be in the very low 5's.
Occasionally the foreclosing lender (should the home you find is a foreclosure) will offer special financing incentives, but usually nothing great, and you would still be better off finding your own mortgage with another lender.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.