BUYING HUD HOMES FOR SALE WITH $100 DOWN PAYMENT
THE HUD $100 DOWN PAYMENT PROGRAM. TO BE ABLE TO TAKE ADVANTAGE OF THIS GREAT PROGRAM YOU WILL HAVE TO USE FHA FINANCING TO PURCHASE THE PROPERTY.
With the recent housing market crash and the credit crunch the options for buying a home with no or low payment has been pretty much wiped out. But there is one great option still available in some parts of the country and that is buying HUD homes for sale by using the HUD $100 Down Payment Program.
First, we need to discuss what a “HUD home” is. A HUD home is a property that has been foreclosed on that originally used FHA insured financing to purchase the property. The homeowner could not make the payments for whatever reasons and the lender foreclosed on it. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property.
Once HUD takes ownership they will start the marketing process by assigning the property to their Asset Manager in the district that the property is located. The Asset Manager will secure the property and assign it to a Field Manager. The Field Manager will then prepare the property for sale. It is then listed with a local HUD-approved Real Estate Broker. This is when the property is made available to the public for sale.
Ok, now to the good part, the HUD $100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property. The normal down payment for a FHA home loan is 3.5%. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and also to get owner-occupant into the homes. They believe people who own their home will take care of it better than a renter thus improving the neighborhood. This program is only for people who are going to buy the homes to live in. It is not for investors!
Of course this is a government program which means there are some strings attached to the program.
1. As mentioned above, it is for owner-occupants only.
2. You have to use FHA financing to purchase the home.
3. It is HUD homes for sale only, which are homes that have been foreclosed on that was purchased with FHA financing.
4. Even though you only have to pay $100 down payment you will still need the required earnest money. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000.
This program is not nation-wide; it is currently being offer in about half of the states. The HUD $100 Down Payment Program is a great way to purchase a home if you do not have a lot of money for a down payment. It will give you the opportunity to buy a home now while the home prices and the interest rates are low!
You can get more information about HUD Homes For Sale and also you can get more information about $100 down payment by clicking
https://www.hudhomestore.com/Listing/PropertySearchResult.aspx?sState=MD&sLanguage=ENGLISH
THE HUD $100 DOWN PAYMENT PROGRAM. TO BE ABLE TO TAKE ADVANTAGE OF THIS GREAT PROGRAM YOU WILL HAVE TO USE FHA FINANCING TO PURCHASE THE PROPERTY.
With the recent housing market crash and the credit crunch the options for buying a home with no or low payment has been pretty much wiped out. But there is one great option still available in some parts of the country and that is buying HUD homes for sale by using the HUD $100 Down Payment Program.
First, we need to discuss what a “HUD home” is. A HUD home is a property that has been foreclosed on that originally used FHA insured financing to purchase the property. The homeowner could not make the payments for whatever reasons and the lender foreclosed on it. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property.
Once HUD takes ownership they will start the marketing process by assigning the property to their Asset Manager in the district that the property is located. The Asset Manager will secure the property and assign it to a Field Manager. The Field Manager will then prepare the property for sale. It is then listed with a local HUD-approved Real Estate Broker. This is when the property is made available to the public for sale.
Ok, now to the good part, the HUD $100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property. The normal down payment for a FHA home loan is 3.5%. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and also to get owner-occupant into the homes. They believe people who own their home will take care of it better than a renter thus improving the neighborhood. This program is only for people who are going to buy the homes to live in. It is not for investors!
Of course this is a government program which means there are some strings attached to the program.
1. As mentioned above, it is for owner-occupants only.
2. You have to use FHA financing to purchase the home.
3. It is HUD homes for sale only, which are homes that have been foreclosed on that was purchased with FHA financing.
4. Even though you only have to pay $100 down payment you will still need the required earnest money. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000.
This program is not nation-wide; it is currently being offer in about half of the states. The HUD $100 Down Payment Program is a great way to purchase a home if you do not have a lot of money for a down payment. It will give you the opportunity to buy a home now while the home prices and the interest rates are low!
You can get more information about HUD Homes For Sale and also you can get more information about $100 down payment by clicking
https://www.hudhomestore.com/Listing/PropertySearchResult.aspx?sState=MD&sLanguage=ENGLISH