how to buy a bank owned foreclosed home with conventional loan?

That's a tough one.. this is one of the few times I would refer you to a local bank.. Most lenders have a minimum amount they will finance... the rules in place prohibit over charging for a loan, however a lot of the costs associated with a new loan are fixed costs.. Meaning if you buy a $30K home or a $230K home the cost is the same... other costs are variable, meaning they are based on a percentage of the loan amount.. Because the laws limit what they can charge as a percentage of the loan, most lenders will not go below a certain dollar amount.. on a $30K home, there's just not enough money to be made.... lenders who will do this low of a loan amount, will probably charge you somewhere in the 5.5% to 6.5%... Good luck.. WilliamAcres.com