How To Get Money To Buy Foreclosed Homes May 2026

: Offers special financing on Freddie Mac-owned foreclosures, often waiving the requirement for mortgage insurance, which can save thousands over time.

If you plan to live in the home as your primary residence, these programs offer flexible credit requirements and low down payments. how to get money to buy foreclosed homes

Investors or those buying at auction (where traditional mortgages are often rejected) typically use faster, more flexible capital. : Some investors tap into retirement accounts for

: Some investors tap into retirement accounts for a short-term "loan" to themselves to cover a purchase, though this carries tax risks. more flexible capital.

: In pre-foreclosure or short-sale scenarios, you may be able to negotiate for the current owner to "act as the bank," though this is rarer with properties already owned by a bank (REOs). Quick Comparison of Financing Options Typical Down Payment Key Requirement FHA 203(k) Fixer-uppers (Owner) Licensed contractor bids Conventional Move-in ready REOs High credit score Hard Money Rapid auction buys High property equity HomePath First-time buyers Education course

: Targeted at first-time buyers, this program provides up to 3% closing cost assistance for Fannie Mae-owned properties after completing a required education course.