If a home needs a little cosmetic repair, you may opt for Streamline 203k which you can choose new carpet, paint, etc from 5k up to 35k within this type purchase loan and close within 45 days.
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
In general, you'll find two type of HUD homes; one that is habitable and non-habitable. Read their disclosures about the conditions. Habitable ones meet conventional financing guidelines. And, non-habitable are the ones that need repairs and you won't be able to get it with a low down payment conventional financing, perhaps with a large down payment. Or, you can get it with an FHA 203k financing which includes an rehab repair amount to bring property up to code.
The advantage of this loan is that you come up with a minimum down payment as low as of 3.5% and a low fix rate in one loan! The only disadvantage is that you would pay mortgage insurance premium, usually paid up front financed in the loan and a monthly thereafter.