How to Get Money to Buy a Foreclosed Investment Home in Clarksville
You need to decide if you are keeping the house to use as a rental or buying it to flip or resell. Choosing a Clarksville real estate agent that knows the ins and outs of working with foreclosed homes is the most important first step.
An experienced agent can help guide you in the many options of financing and which properties will qualify for each type. Not all foreclosed properties are able to get funding. Many are in need of major repairs and traditional secondary market financing just will not work. If the property qualifies for an investor loan through Fannie Mae the buyer may be required to have as much as 20 to 25% off the value for a cash downpayment.
Another source for money is to approach your bank and ask for in-bank financing. This will be more like a commercial type loan and the bank will have shorter pay back terms. They reserve these type loans for their strong customers but I have had many clients that have used these loans time and time again. It is a whole lot easier to qualify and the closing is much faster than typical secondary market mortgage financing. This works well when you intend to flip the property.
If you have a substantial amount of equity in your current home, you may be able to borrow against it and produce ready cash to make a cash purchase. This type of loan is often referred to as Home Equity Line of Credit (HELOC). You are leverage your equity to be able to purchase your foreclosed investment home in Clarksville and can either flip the home or keep it to rent out allowing the rental payments to pay back the Equity Line on your current home.
Of course you could have liquid cash, sell stocks or mutual funds, borrow cash against an insurance policy or borrow against your IRA accounts. If you choose the latter you will have to follow strict requirements so you will not suffer IRS penalties of early withdrawal.
There are hard money loan companies that operate more loosely when lending money but you will pay more interest, fees and points to borrow the money. You could also find a private investor that is willing to take the risk of lending you the money. Sometimes getting a partner to invest with you can be the answer.
These are the ways to get money to buy a foreclosed investment home in Clarksville. I highly recommend you start with choosing the right agent. I have sold these kinds of properties for 25 years and can help you take the right steps.
If you are ready to start your search for a foreclosed investment home in Clarksville then contact Debbie Reynolds, Realtor at 931-920-6730.
"The Real Debbie Reynolds" at BuyorSellClarksville.com
Prudential PenFed Realty, 2503 Wilma Rudolph Blvd., Clarksville, TN 37040
An independently owned and operated member of BRER Affiliated, Inc.
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