Newly Built Home – There are still newly built homes on the market. In the Sunday section of the paper these are highlighted with a map. Sometimes there is special financing available through the builder.
- Resale Home – These are homes for resale by the owner. Sometimes the owner still lives in them and sometimes they are empty. Financing is available through the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac. All three agencies require proof of income, a down payment and will examine your credit. 30 year fixed mortgages are available.
- Short Sale – These are homes for sale that require homeowner/seller approval and lender approval. The seller owes more than the property is now worth. As an example, the mortgage owed is for $400,000, but the house is only worth $250,000 right now. The seller and their mortgage holder have to approve the contract for sale. The loan you get will be a typical FHA, Fannie Mae or Freddie Mac 30 year fixed. But you might have to wait – even up to 6 months – for the mortgage holder to approve a lesser pay-off.
- Foreclosure – For some reason a lot of people think buying a foreclosure requires a strange and different loan. It does not. BUT FHA, Fannie Mae and Freddie Mac do require an appraisal. The appraisal cannot say the house is an extreme “fixer” and needs lots of lots of work, or you won’t get a typical 30 year fixed rate loan. If the foreclosure you are looking to buy is tired and dirty – which a lot of them are – you generally can get a typical loan. If the property is an extreme “fixer” and it is obvious, the appraiser will note this and the lender will not approve your loan. Other than that, buying a foreclosure is like buying a regular resale.
Forest Tardibuono is a CA DRE Broker with over 20 years experience in real estate and lending. His number is (707) 523-2099. See website at: sunpacmortgage.com.