How To Get Money To Buy Foreclosed Homes May 2026

: These are short-term, asset-based loans from private lenders. They close quickly (often in days) but come with high interest rates (10%–15%) and require a significant down payment (20%–35%).

Investors or those buying at auction (where traditional mortgages are often rejected) typically use faster, more flexible capital.

If buying a bank-owned (REO) property, consider getting pre-approved by the same bank that owns the home. While not required, it can sometimes make your offer more competitive in their internal review process. how to get money to buy foreclosed homes

: Ideal for foreclosures in poor condition, this loan bundles the purchase price and repair costs into a single mortgage.

: Offers special financing on Freddie Mac-owned foreclosures, often waiving the requirement for mortgage insurance, which can save thousands over time. : These are short-term, asset-based loans from private

Are you looking to buy a foreclosure as your or as an investment property ?

: If you have equity in an existing home, you can use a HELOC to get immediate cash for a foreclosure purchase or down payment. If buying a bank-owned (REO) property, consider getting

: 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.