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Financing for auction purchased homes?

I'm just getting familiar with the process, and I'm only looking for a loan to cover the sale price. I do not need funds for repairs because I can do all of them myself so 203k etc not necessary. Are there any special programs for buying property at auction by vangauche7864710 from Lake Odessa, Michigan. Nov 7th 2014 Reply

William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,369 contributions

Most auctions require you to pay for your purchase within 1 to 3 days.. There are no conforming lending programs out there that will allow you to purchase an auction property and close that quickly. You will need to use private (Hard) money and then do a refinance after.. Most private money loans have really bad terms.. high interest rates and fees, and short repayment terms.. but the biggest thing is that you will need a large down payment.. typically 30% or more. There is no way to get 100% financing on an auction property unless this is something you've done a hundred times with the same lender.. then it's possible, but otherwise, expect 30% or more down payment. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Nov 7th 2014
Larry Gray (lgray_312_247)
#586 ranked lender in California - 1,137 contributions

Mr. Acres provides an excellent answer. You can search for private money lenders in your region. It is common for many contractors who plan to work on a property they purchase to initially get a hard money or private money loan. The profits realized after all the work more than compensate for the added cost of the loan so they could get the property. For you it becomes a more difficult question perhaps since you plan to live there, correct? Anyway, if 30% down payment is an obstacle than that may eliminate this as possibility for you.

Nov 7th 2014
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