If you are thinking of purchasing a home then you should consider repossession homes. The market is saturated with houses an you don't ever have to buy one at market value. An agent might tell you that you do have to purchase a house that is not a foreclosed one but that is so they can make a bigger profit. Never trust an agent that tells you that you cannot apply your loan to homes repossession listings. Banks want to get rid of them and they will work with you to get you into one of their many listed homes.
A bank loan can be used to purchase homes repossession listings if you ask them. You will not be able to acquire a bank loan to purchase a house that has foundation or structural damages. Some people assume that all foreclosures have foundation and structural issues and this is not the case. You can actually find many repossession homes that are in almost new condition on the inside. Be sure you ask the bank for a copy of a recent appraisal and an inspection report. You may have to pay for one of these reports but you may find that it is well worth it in the end when you buy a home for a fraction of the market value. There are plenty of houses to choose from and there is thousands of dollars to be saved. Why get a loan for such a large amount when you don't have to?