Eleanor Thorne, Mortgage Loan Specialist in HUD homes.
People are able to scoop up some great deals on some foreclosed home in NC. If you are purchasing a HUD Home, qualified buyers are able to purchase these houses with only a $100 down payment!
A lot of people are not aware that most HUD foreclosures in North Carolina are available with only a $100 down payment for owner occupied purchases. Also, you can get up to $5,000 to make repairs on the property as part of the purchase transaction!
If the repairs are more extensive, there is the full FHA 203k Streamline Mortgage Program, but you can't combine this program with the $100 downpayment - you have to make a 3.5% downpayment to qualify for the renovation loan.
We are able to connect you with NC Loan officers that specialize in mortgage programs for people interested in buying foreclosures in NC.
Any home that was previously insured by FHA, and is now for sale on the HUD Home Store website, is eligible. As you look through the individual listings, you will see that some of the homes are only available to non-profits - others might note how much work FHA has already determined the home needs. You can see this under "Repair Escrow".
The buyer must be an owner occupant to qualify. An owner occupant means that you will live in the house you buy. To qualify you must be willing to live in the house for a year. You must also offer full price.
The current list price is a full price offer, even if the property has been price reduced. HUD will still pay up to 3% of the list price for closing costs. This is a great opportunity for buyers to purchase a HUD home at a reduced price and with an affordable down payment.
Because these properties have been marked down so much already - in order to win the bid with HUD, some buyers are offering a price slightly higher than the current asking price. In this situation, you would need to bring in the difference between the accepted offer and the appraised value in cash at closing.
Firemen, Police Officers, Teachers and qualified EMTs can bid on many of the NC HUD houses at 50% of the current HUD listed price. FHA does require a silent 2nd mortgage, for the discount amount. (Our specialized HUD mortgage loan offers can explain this in detail.)
However, as long as you live in the property for three years, no interest or payments are required on this "silent second." After you live in the Good Neighbor Next Door home for 3 years, you can sell the home and keep any equity and/or appreciation you might gain.
This program is primarily designed for first time home buyers - so you can not CURRENTLY own any real estate, and you cannot have previously owned real estate during the 365 days before you make the offer on the house.
Those who qualify for this bidding process can purchase the homes with as little as $100 down - but be reminded that they are in areas that are "zoned" as revitalization areas.
There are hundreds of houses that qualify for this programs available in NC, and Wake County has over 30 homes that qualify today! HUD Homes generally come on the market at the end of every month - so check back!
If you want information about the Good Neighbor Next Door Program or other mortgage programs available to help you buy foreclosed homes, or to purchase a HUD home in Raleigh for $100 down payment - call 919-624-6726 or 919-280-2726 so that we can connect you to the loan officers Eleanor and Steve Thorne who are the experts in the buying foreclosures in NC and using the FHA 203K program to renovate a foreclosed home!
Other things to consider when buying a Raleigh home are Pre-Approval vs. Pre-Qualified, Questions You Need to Ask a Raleigh Realtor and Raleigh Home Buyer - Don't Trip Up Your Raleigh Home Loan.