Is buying a foreclosure for my first home a good idea or is there any issues?

most foreclosed homes require some work, I would go with a 203K FHA loan, only 3.5% down, which can be "gifted " and all your closing costs can be paid for by the seller.emarez@thefederalsavingsbank.com

That depends on the condition of the foreclosed home if extensive repair is needed I would stay away from it being my first home. Putting money down does not effect your rate which is dependent on your credit score. If putting 10% down and good credit I would go conventional financing and pay the MI (mortgage insurance) in full therefore eliminating the monthly from your payment . FHA mortgage insurance is for the life of the loan and you will have to refinance to a conventional loan to get rid of the insurance. I can be reached at ballen@monarchmtg.com or 240-750-8315 anytime.

Technically it makes no difference to you or us that it is a foreclosure... But generally speaking, foreclosures almost always have deferred maintenance issues and need some work. Some need a little and are great deals, some are financial nightmares... Initial "cost less" is not always what it is cracked up to be. Just do a good inspection, and know what you are getting into, and you'll be fine. Rate depends on many factors. Credit, loan program, etc. Talk to your local mortgage broker for your specific situation. www.Minneapolis-Mortgage.net

I agree with the previous posters---- unless the house is in almost perfect shape and the bank that owns the property is willing to let you have an inspection contingency on the contract, (which they never do as far as I know) I would stay away as a first time home buyer. If you need more information, a pre-qualification, or a competing rate quote you can go to my web page and use my live support button to discuss anything at all with me. http://www.loansfromrob.com/quote/ Email is rhanson@gladewaterfinancial.com and direct phone is 240-752-7549. I am in Silver Spring so local to you....Good Luck -- Rob Hanson

oopsss.. mixed up two of my email addresses when tying! My correct email is rhanson@gladewaternational.com

Buying a foreclosure is not a bad idea, but most foreclosed homes are in bad shape, and the appraisal has to reflect any property deficiencies that affect safety and health concerns, so most need repairs to be financed.. if you use FHA's 203K rehab loan, you will pay higher fees and higher interest rate, but you can include the repairs into the loan... so it's probably better to look at foreclosed homes that don't have any major deficiencies.. having 10%-15% will not necessarily lower your rate, but it would be beneficial if your using conventional financing.. you'll pay mortgage insurance, however the premiums are much lower than FHA, so it could save you hundreds.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com