| If you're looking for a great deal when you buy a | | | | you want to take advantage of the $100 down |
| home, then you must look at HUD homes. The Federal | | | | program, you must offer full price. |
| Housing Administration, or FHA, has a program that | | | | How do I qualify for the $100 Down Payment |
| allows you to buy a HUD home with only a $100 down | | | | Program? |
| payment. | | | | Other than offering full asking price, you must meet all |
| Normally an FHA loan requires 3.5% down plus closing | | | | the standard qualifications for an FHA loan (with the |
| costs, but with this special program, you only need to | | | | exception of putting 3.5% down). Contrary to popular |
| put down $100. Talk about saving some money! | | | | belief, you do NOT have to be a first time home-buyer |
| You will be required to put up some earnest money, | | | | to qualify for an FHA loan! The $100 program is even |
| but it will be refunded at closing if you use an FHA loan | | | | available to people who already own homes, so long |
| and your offer is accepted. For homes below $50,000 | | | | as they intend to occupy the one they are now buying, |
| the deposit is $500 and for homes over $50,000 the | | | | and their income can support repayment of the new |
| deposit is $1,000. HUD pays up to 3% of your closing | | | | loan. |
| costs which usually is enough to cover them. | | | | Okay, Brent, I am in! What do I do now? |
| Here are some common questions from homebuyers | | | | |
| about the lucrative and previously obscure world of | | | | 1. First you have to get pre-approved. You will need a |
| HUD homes and the unique $100 program from the | | | | letter from your lender saying that you meet the |
| FHA. | | | | guidelines for purchasing the home. |
| What the heck is a HUD Home?A HUD home is a | | | | 2. You need to provide a cashiers check for your |
| property that had a FHA-insured mortgage which has | | | | earnest money, which will be refunded to you when |
| gone into foreclosure. HUD pays out on the mortgage | | | | your sale closes, or when a different offer is |
| insurance policy to the bank and then puts the | | | | accepted. |
| property up for sale to get some of their money back. | | | | 3. You bid on the property using a HUD-approved |
| The price is set from a recent AS-IS appraisal, which | | | | reagents. |
| is the price the house would most likely sell for in the | | | | 4. The bid gets sent in on an electronic bidding website. |
| current market in its current condition. | | | | 5. When the auction closes, your realtor checks to see |
| So how do HUD homes get sold?Any real estate | | | | if you have won. |
| broker who is registered with HUD can submit an offer | | | | 6. If you are the one with the winning bid, we will |
| for you. The house is sold through an auction process | | | | proceed with your financing. |
| where all the bids are sealed. To qualify for the $100 | | | | I am ready! What is my next step? |
| down program, the offer must be for the full sale | | | | You must find an FHA-approved lender and get |
| amount and the bid will go to the buyer with the | | | | pre-approved for the loan. It only takes a few minutes |
| highest offer. | | | | and will be well worth your time. You should look for a |
| Who gets to buy a HUD Home?Anyone who qualifies | | | | lender that has a lot of experience financing HUD |
| can buy a HUD home. Initially, bidding is only open to | | | | foreclosed properties, as the lender will need to take |
| owner-occupied buyers, meaning those who intend to | | | | additional measures during the loan process to ensure |
| live in the home; however, if no bid has been made | | | | a successful closing. |
| after a period of 10 days, properties are made | | | | Also, ask your lender for references to several |
| available to all buyers, including investors. | | | | HUD-approved real estate agents in your area that |
| So how do I buy a HUD home?Buying a HUD home is | | | | specialize in foreclosures. If your lender has spent any |
| a lot different than buying a regular house. For a | | | | time working with this program, they should be able to |
| conventional purchase, usually you write up an offer, | | | | provide this to you. |
| the seller looks at it and then accepts it or makes a | | | | Take action today before the Government closes this |
| counter offer. As I stated before, HUD homes are sold | | | | program. Guidelines change daily so you may not have |
| through an auction. You can bid anything you want, but | | | | much time. |
| the home usually goes to the highest bidder. Again, if | | | | |