HUD Homes Available for Only $100 Down
Originally posted in Active Rain November, 2011.
Yes, that’s right. From now until October 2012, HUD is allowing consumers to purchase specific HUD Homes in the state of Texas for only $100 down payment instead of the usual 3.5% down payment normally required by FHA loans. Of course, there are restrictions and requirements that apply. The most common one is the fact that consumers must actually live in the home as their primary residence. It’s just another way to discourage many investors, who are house flippers.
Consumers must qualify for the loan by the normal FHA guidelines for financing too. That means being pre-approved for a loan with an approved HUD FHA Lender for your mortgage. HUD will also allow consumers to make that $100 down payment on eligible 203(K) loan programs too. The 203 Streamline or Full 203(k) loans will allow borrowers to repair and renovate some of these homes in need of repairs and renovations. Remember in the state of Texas consumers may qualify up to $35,000 for repairs and Renovations. See my previous post, Don’t Buy No Ugly House, for more information on the 203 Streamline loans.
Consumers may also be able to negotiate up to 6% for closing costs too on these HUD Homes. This low down payment may be very helpful for many First Time Home Buyers, who are looking to get into home ownership. Even if you are not a First Time Home Buyer, or just a little short on cash, this lower down payment offered by HUD could be a great option worth considering.
The federal government by offering this $100 down payment is taking an aggressive step to unload many of their foreclosed homes, and to get the economy going back on track and on the road to recovery. The government is just preparing for all those foreclosed homes owned by Countrywide Mortgage, which was bought out by Bank of America. It is estimated that approximately 40,000 new foreclosures will be on the market soon.
With the interest rates still low, and this $100 down payment on HUD’s foreclosed properties, Now is a Great time to Buy your First Home, or your Dream Home, if you decide to make those needed renovations. So here are the three steps required in the process of purchasing a HUD home.
3. Find a FHA Approved Lender.
If you know anyone thinking about buying a foreclosed home this year in and around San Antonio, Texas, send me their names and phone numbers, and I will be glad to assist them in purchasing any of these HUD foreclosed homes. Contact Jerry Newman Today!