pay cash at a foreclosure auction can get money out w/Mortgage

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pay cash at a foreclosure auction can get money out w/Mortgage

Chris Houghtaling
Homestead, FL · Member since 2016 · 19 posts · 0 votes

If I pay cash at a foreclosure auction.. can i get my money out with a conventional FHA Mortgage. if yes how much %. I would like it all except a small down payment. I will live in the house.

Will the mortgage be based on the appraised value or price I paid.

How long after i buy will i have to wait. 

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  • Account Closed
    Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
    9y

    @Chris Houghtaling Since what you want to do is not how I would do it, I don't have specifics. I would simply call a mortgage broker in your area, tell them what you want to accomplish (FHA varies somewhat by county) and let them tell you your options. There may be ways to do things you haven't thought of that would benefit you.

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  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    9y

    You can cash out up to 85% LTV on primary residence.

    fewer than 12 months preceding the date of the loan application is limited to the lesser of 85% of the  appraiser’s estimate of value, or

     sales price of the property when acquired. 

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  • Chris Houghtaling
    OP
    Homestead, FL · Member since 2016 · 19 posts · 0 votes
    9y

    Could i form a corporation, or LLC or just open a bank account with a company name. Buy it at the foreclosure sale under that name and then buy it from that company with a FHA mortgage at 3.5%. instead of 15%..Would that work ? Is that legal ?

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    No.

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  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    9y

    @Chris Houghtaling You can do this under Delayed financing with a convention loan.  Lenders offer this program as a rate and term refinance since you paid cash for the property.  I would expect 80 to 85% of the purchase price.

    C2 Financial
    WebsiteView Page
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