Profile picture for user1117920

Can you use the USDA loan to purchase homes that are foreclosed upon, bank owned, or short sale?

My wife and I are interested in a house, but is currently banked owned (Im assuming that means it got foreclosed upon).

Is it still eligible for the USDA?
  • August 04 2013 - Florence
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (7)

Profile picture for Dunes ..
mstaton61

You might be interested in taking a look at the Fed. Gov Web Site created to provide information to the public about all the Loans/options they have available..like USDA/Rehab loans programs ect.

"Use the listing below to search for specific information, compare options, or take a short questionnaire to determine your eligibility for each program"...GovLoans.gov



  • September 02 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
"Does a forclosed home have to be move in ready for a used a loan"

No, but it still has to qualify with your lender for financing. In most cases, that means a kitchen, funtional roof and heating system. For FHA or VA, you must meet higher standards for occupancy standards. 

If you are looking at a foreclosure that needs a lot of work, you might consider getting information on a 203K type renovation loan.
  • September 02 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mstaton61
Does a forclosed home have to be move in ready for a usda loan
  • September 02 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It is eligible for USDA based upon the USDA regulations not upon the fact of it being a foreclosure or short sale. My suggestion would be to talk with a Realtor or  Financial Advisors to help you with this. Most Realtor's and of course Financial Advisors are very knowledgeable about the USDA loan possibilities.

As mentioned however, this probably will take quite a while as well as be somewhat difficult. Again this is why I would definitely have a Realtor to help you. Good luck.
  • November 22 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In addition to the comments below, keep in mind a USDA loan will traditionally take longer to fund. That in addition to the fact that buying a bank owned home can takes months, can definitely make the home buying process take much longer. 
  • August 05 2013
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I concur as long as the property is in USDA deemed area your ok. Keep in mind theses loans have stricter appraisal guidelines. Often banks don't want to negotiate repairs. Hope that helps. If so please click thumbs up.
  • August 04 2013
  • 15Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Yea, if the property qualifies for USDA, the fact that its a foreclosure or short sale won't matter.
  • August 04 2013
  • 6Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.