First home buyer + FHA + Foreclosure = ?????

[Jay D.]

Newbie to BP and REI! Enjoying all the posts and knowledge everyone has on here!

I am currently a student (Loan repayments deferred for 12+ months). I have pretty good paying job right now while in school. Looking to use my income to purchase a property. I'm interested in purchasing a foreclosure with an FHA loan.

First, is this possible? Second, what are some risks that I should be aware of and how can I mitigate said risks?

I do plan to live on the property for at least a year before deciding my next move. 

Btw, I am in the Sacramento Region.

[Mike Sattem]

Howdy there,

1st off, you CAN use an FHA loan to purchase a foreclosed home, however it won't be at the auction, it would be listed through a Realtor. However, FHA is very picky when it comes to the condition of the property, and I have very rarely seen a foreclosed home that would qualify using an FHA loan. Additionally, most foreclosed homes typically aren't sold at discounts once they reach the open market unless they are in some stage of poor condition. So, it's possible, but you may be better off to consider all properties, instead of focusing strictly on foreclosures.