Realty Times – Get a HUD Home for $100 Down Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan


Realty Times – Get a HUD Home for $100 Down.

via Realty Times – Get a HUD Home for $100 Down.

Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan

HUD Homes are Foreclosures owned by the Department of Housing and Urban Development (HUD) that were previously financed with FHA financing.

While you may use any type of financing or pay cash, there are specific perks in using FHA financing when buying a HUD home as your primary residence.

HUD Homes can be Single Family Homes, Multi-Units (up to 4), Condominiums or Townhomes.

You can browse available inventory at the HUD Home Store.

Unlike most homes for sale, HUD Homes are sold through bids placed by HUD approved Realtors on its website.

  1. $100 Down Payment Program
    Many lenders/banks offer a special FHA mortgage program designed only to purchase HUD homes with a minimum down payment of only $100 regardless of the price of the home
  2. No Appraisal Fee
    HUD orders and pays for the appraisal. As long as it is less than 4 months old when your loan is in underwriting it is generally accepted and used. If it is over 4 months or even 6 months old, you will be required to order and pay for another one.
  3. No Inspection Fee 
    HUD orders and pays for a detailed Property Inspection Report which you will receive once under contract.
  4. Typically 45 Days to Close 
    Although the time frame could vary, most contracts allow for a reasonable closing time frame of 45 days.
  5. Ability to Escrow for Repairs (out of pocket) 
    Many lender/banks do not let you close on your home if there are deficiencies with the home. With HUD homes, you have the ability to escrow for repairs and perform them after you close. Oftentimes, the escrow is funded by you however.

Some of the most common misconceptions with this niche product are:

I cannot ask HUD to pay part or all of my closing cost.

WRONG. HUD does allow for closing cost concessions. However, as with any other real estate transaction, you may make your offer less attractive in a bidding situation.

I have to use FHA financing.

WRONG. While there are incentives for FHA buyers and thus owner occupant buyers (such as early bidding), you are not required to use FHA financing. You may use conventional financing or pay cash.

I can use my Realtor of choice.

WRONG. As in any other real estate transactions, HUD allows for a listing and selling realtor. However, both have to be approved/ registered with HUD. There is a comprehensive list on HUD’s website where you can check for your Realtor’s name.

I cannot inspect the home.

WRONG. While every HUD home comes with a Property Inspection Report, given to you once you win the bid and thus are buying the house, you are able to still inspect the home on your own or with alicensed home inspector.

I do want to point out one downside:

As with any government owned foreclosures (FannieMae/FreddieMac), the seller is congressionally exempt from paying sales tax. Thus, you will pay your documentary stamps/state tax on the mortgage (35 cents per $100), your intangible tax/county tax (20 cents on $100) plus the sellers documentary stamps/state tax on the Deed (70 cents per $100).

Regardless of the financing tool you intend to use, HUD homes are worth exploring.

Legal Disclaimer

This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.

**Download Fair Housing Booklet – CLICK HERE

All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines.

 

 

Advertisements

8 thoughts on “Realty Times – Get a HUD Home for $100 Down Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan

  1. Pingback: Realty Times – Get a HUD Home for $100 Down Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan | Louisville Ky Mortgage Rates

  2. Pingback: Kentucky USDA Loans | Rural Housing Loans Kentucky | Kentucky USDA RHS Rural Housing Mortgage Loans

  3. Pingback: No Down Payment Mortgage Loan Louisville Ky | Kentucky First Time Home Buyer Mortgage Loan

  4. Pingback: >What NOT To Do After You Apply for a Kentucky Mortgage Loan Approval | Louisville Ky Mortgage Rates

  5. Pingback: 100% FINANCING Kentucky Mortgage Loans zero down | Louisville Ky Mortgage Rates

  6. Pingback: Looks like it is getting more costly to purchase a home with FHA financing! | Kentucky FHA Mortgage Loans

  7. Pingback: HUD Homes in KY 2013 | Kentucky First Time Home Buyer Mortgage Loan

  8. Pingback: HUD Good Neighbor Program Home Foreclosure Deal | Kentucky First Time Home Buyer Mortgage Loan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s