Question:

What are FHA repo homes and how to use them?

Answer:

FHA repo homes are in fact foreclosure homes owned by the lender. They are also called real estate owned (REO) properties, foreclosure homes, repossessed properties, government homes, commercial seized properties, etc.

If you are an investor or a potential home buyer with limited funds, you may like to try buying a repo home. They are cheaper, and come in all size and type - 1 to 4 units, condos, business properties, etc. The lender will be eager to get rid of FHA repo homes, so they sell 10-25% below market price.

Many FHA repo homes need a lot of repairs, so it is useful to avoid run-down REO properties, as they will be expensive to repair.

FHA repo homes are located on foreclosure home databases - online or through real estate agents.

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Why: Find bank foreclosures, HUD homes, VA homes in your area.
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Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Common misspellings: mortage and morgage