So, what is a HUD home? It is a home that HUD now owns that was foreclosed upon in which it was an FHA insured property. HUD is then the property owner, in which it trys to sell it to recover the loss on the foreclosure claim. The home has to be a 1 - 4 family residential property.
So, you heard it right here, you can buy a HUD property for $100.00. You do need to check with the certain HUD incentives though, because they do vary from State to State. The one thing that won't vary is that you can buy a HUD home with $100 by using a FHA loan program. And just for the fact that you can still receive up to 6% as a seller concession. And these HUD homes can also be bought with the Good Neighbor Program, which I will talk about later.
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- Mortgages -
Experience & Knowledge at its BEST !!!
________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!
Copyright © 2009 by Jeff Belonger
Jeff, I didn't know this. I just had an offer accepted on a HUD home. My buyers are not able to go FHA because of the amount of work that needs completed. I'm checking in to our state regulations to see what we can do. Wonder if we could escrow the work that needs completed? I also wonder if this would apply for upgrades?
Check you out! Your title isn't a teaser! Good info and the good neighbor program is pretty neat, I've read into that one before.
Jeff,
A word to the wise, CYA! READ EVERY WORD BEFORE YOU SIGN! These are great deals but between HUD arrogance and the incompetent distant listing agents you'll need help.
Please remind the public use a competent professional! You can't do it yourself and this is no place for the inexperienced.
Battled Scared,
Bill
Jeff - well that sounds like good news. I am anxious to here more since FHA is not something I know much about. What do you think about the new relaxed inspectional issues?
Jeff
Jeff - I'm going to second Bill's motion. Although I'm not battle scarred because none of my clients who have ever made an offer on those HUD $100 homes has ever had their offer accepted. Working with those incompetent distant listing agents did prove to be extremely challenging for both my clients and their Realtors.
Jeff,
Thanks for setting up our AR get together! Hey, even I can afford one of those mortgages!!! Thanks, Fran
Looking forward to more details on this, since I have never done one.
Hi Jeff: Can wait for more. I have been having great success marketing this on Craigs List - Great topic and I am sure coming from the "FHA MAN" it will be good. Hey what are you doing home on a Saturday night at 8:17 pm???? You should be out and about- How are you going to find Mrs. Jeff staying home and blogging for us?
In this market, I hear that HUD(or whomever is selling for them) has been limiting seller credit to 3% on the $100 Down deals.
Hi Jeff - Sounds good on paper. Need to have open-minded, flexible, tenacious buyers to pull them off though. We haven't seen much of this in our area, probably because our price ranges have been far above FHA limits for years. But, with FHA limits going up and prices coming down, we'll probably have some HUD homes in the future.
Thanks for the info,
Marlene
Fran - I might even be able to buy TWO of these :-) Two cash offers - that's what I'm talking about.!!!
KAY.... . I am not 100% sure of how it would work, but HUD does state that you can get monies for repairs and such... or roll them in. I just didn't have the answers for that, hence why I didn't mention it. But the client can do a FHA 203-k loan or a 203-k streamline loan. That is allowed on these and can be done in a timely manner. I don't lend in MO., but I will follow up with you. In regards to escrowing work, I don't know too many lenders that allow this anymore. We do, but only weather related stuff. thanks
KRISTA.... . I don't tease... ;o) And yes, that good neighbor program is really good. I'll be writing about that soon. thanks
WILLIAM.... . I agree, but most people don't read every word. And yes, they should work with a real professional. But I can make those statements every day and people will do what they want. And the bad part about that is that you don't always know if that person is a true professional until it's too late. thanks
JEFF D. ... . what new relaxed inspection issues? For? For FHA loans? Any loans? Are you talking about appraisals? And if so, where did hear about this and what did you hear. thanks
DONNE.... . I could agree with that, but some people can talk it up some, sounding very professional, making promises, and then drop the ball. It's tough out there... thanks
FRAN..... . my pleasure and again, it was great meeting you and your son-in-law, Gil.
MARGARET..... . there are more details, but things keep changing daily now. I'll be sharing some details soon. The problem with this is that HUD has their own guidelines, but the investors keep changing theirs. thanks
GWENN.... . you said that you have had great success marketing this? But have you done any at all? In regards to Mrs. Jeff, I need to make money, hence why blogging, to support Mrs. Jeff... lol Besides, I went out about 30 minutes after I wrote this.
TOM... . I haven't heard that and I am checking into that. Do you have anything in writing? Because I can't seem to find a definite answer on that one, as usual. lol thanks
MARLENE.... . well, people keep saying that FHA loan limits are going up, because of the stimulus package, but until it's in the bill and signed by the president, I am not saying anything. I have already had a few clients tell me that they were suppose to have gone up already, but so many expected the bill to have been signed. Those types of loan officers tick me off, putting info out there on changes that haven't happened as of yet, that was just chit chat. When do we learn?
STEVE.... . how about 3? That's only $300... lol well, I guess you can't own 3 primarys at once though. That would be a new one, right?
For homes that need repair you need to look for a FHA 203(k) loan. It is a FHA loan that looks similar to a construction loan. The buyer hires a contractor and all bids are decided and agreed upon before the purchase, the home is bought and the work is done within 3-6 months (depending on lender). The final work is inspected and final money is dispersed to contractor and the owners have a newly modified home! The work can be anything from roofing, foundation, renovation of interior, siding, and even new appliances!
Just a FYI.
Jeff,
can you verify the 6% seller concession? i spoke with the HUD closing agent in southern california and they told me that you HUD will only allow a 3% concession for closing cost. i just dont want people getting the wrong information. please help.
JP Lowry
PRESIDENT
Preferred Financial Funding, Inc.