Have You Ever Wanted To Buy Foreclosures And Flip Houses?

Did you know that you can get money from the government... to buy and renovate foreclosures from the government?

Unlike what you hear on TV infomercials, you do not need to take a course or buy any books. In this article we will discuss how to buy these homes. In order to buy and flip foreclosure homes, you will need some money (less than $2,000) and an average credit score (620 or above). A little imagination and dedication will be necessary as well.

Many people know that the government has funds to help you buy homes. What most people don't know is that the United States government has several programs designed to buy foreclosures. In addition to this, the US government even has programs that will get you money for all repairs, construction, and landscaping.

Many different government home loan programs provide a way to buy, fix and flip real estate. The primary difference in each loan program is whether or not you have a down payment and funds for repairs. In this article we will explore all the main options and what is required for each program.

Light Rehab / cosmetic foreclosure: Cosmetic rehab is any property that has been neglected or trashed and that does not require a permit to remodel. More often than not, this means the home is in bad condition (dirty, not maintained) but the structure is in good condition (the roof does not leak, the foundation is good).

If you lack funds for a down-payment or want a cosmetic fixer upper, you should apply for a VA Home Loan, FHA 100, or USDA Home Loan. These loans are easy to qualify for and allow you to purchase almost any property as long as it is in move-in-condition. The down payments for these programs are $100 dollars or less and most people will qualify for the home loan program.

This can be a great way to buy a foreclosed home that is outdated or just beat up. Many foreclosures only need some TLC (paint, carpet and a new kitchen or bath) to realize their full potential. New carpet and fresh paint are fairly cheap to put into a home. Although these are the most affordable ways to remodel, these simple adjustments will substantially increase the homes market value. Buy buying an older home, especially one with an ugly kitchen, you can find a great deal. Most folks who buy a home are looking for something pretty and newer. Ugly homes are not as desirable as a home with a fresh re-model. Because of this, ugly homes will have longer market times, lower asking prices and less competition from other buyers. Because there is less competition for an ugly home, there is a better chance at getting a great deal. If you chose to take this route, you will need some money for repairs or need to be able to do the work yourself. It is best to determine the total cost of repairs before you close escrow. You can ask the seller to make some repairs but do not expect them to both remodel the home and sell it for a great price.

If you have money for a down-payment but cannot afford a full renovation, consider a VA HLC - FHA rehab loan. These loans allow you to purchase property in any condition (even condemned properties) and will even give you money to renovate the home or complete the construction. The money for the construction (or rehab) will be paid in installments, as the work is completed. Each phase will need an inspection prior to the release of money for the next phase. These loans can be used for any depth of remodel or rehabilitation. This covers the gambit from new paint to entire house construction. The required down-payment can be as little as $1,000 but this depends on where the property is located and the purchase price of the home. Because the renovation is paid for with proceeds of the loan, not much of your own money is needed for repairs. In most cases, the work should be performed by a contractor. In hiring a contractor, you will not need experience, you will only need a good real estate agent.

To qualify for any of the above programs, you must have verifiable income and an acceptable credit rating. In addition to this, you cannot have any late payments in the last 12 months. To apply, contact the VA Home Loan Centers office nearest you.


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The United States government is currently liquidating foreclosed homes. If you would like to apply for a government back funds to purchase and flip a foreclosure, click the link below. Philip Georgiades is a VA loans expert and is CLS for VA HLC. Click here for more Free information about government home loan programs .