Will Hard Money Lenders Loan money for a Foreclosed HUD Houses?

[LaQuan Bates]

I was looking at Foreclosed HUD homes and was wondering, Will Private/Hard Money Lenders provide loans for these Foreclosed homes so that an Investor can then Rehab it and do a Cashout Refi on the property? Is this even a thing? Are there restrictions on what you can do with a foreclosed HUD home?

[Andrew Postell]

@LaQuan Bates absolutely!  Well, I can't speak for all lenders here but this is exactly one of the great uses for a loan that is based on the asset, like Hard Money.  There are other loan types that can accommodate this but this is right up the ally for Hard Money Lenders. 

[Brent Paul]

Yes they will. I have seen some pretty rough houses. I mean were talking boarded up windows, collapsed roof. That's the beauty of HM. When the banks won't touch it they usually will lend you on it provided the ARV makes it a solid deal.

[Preslie Hicks]

@LaQuan Bates Thank you for asking this because I have been pondering the same! The only houses I can find at prices that work for me are mostly foreclosures and how to find financing regarding foreclosures here in VA, now that I know I will start looking into hard money lending options.

[LaQuan Bates]

@Preslie Hicks me as well! I’ve been sitting on this question for weeks and finally just asked! This is why I love BP!