Myth 3: You need to present an “all-cash” offer to purchase an REO home. 

382213_1304521079631_o

While cash was king in the past, consumers can now make their offers contingent on financing. In fact, the government now offers special loan programs for buyers who need extra cash to renovate purchased REO homes after closing. These are called 203(k) programs, and they bundle the home purchase price and renovation costs into a single mortgage.

In the traditional retail real estate market, home prices around the country may be daunting. With greater access, transparency into the process and new financing options, interested consumers should get educated on the REO market and determine if it is the right avenue for them.