Home Buying in Atlanta>Question Details

nursehollins, Other/Just Looking in Atlanta, GA

Can you buy a hud home and still qualify for Georgia dream? Can you use both programs at the same time?

Asked by nursehollins, Atlanta, GA Sun Jun 3, 2012

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GA Dream and the HUD $100 down programs require a 640 score. If you don't have a 640 score, then you'll have to fend for yourself.

You may, Nurse Hollins, want to look at the Good Neighbor Next Door program which pays up to 50% of the sales price for you. Certain restrictions apply (credit, income, assets and location). Now, I can see a person not being able to come up with $4000 for down payment, but you should be able to come up with $2000. You'll want to make sure that you close in the fall during the month that property taxes are due so that your property tax and insurance escrow balance is minimal (about 2 months of each). This will keep your fees down. I'm not too familiar with this program in terms of whether or not the loan officer can use the rate spread to cover closing costs.

GA Dream does not allow us to use the rate's commission to pass on to you in order to help you with costs. Their rate is usually half a percent higher than everyone else. They also don't pay loan officers anything to do loans, so in my belief, there is no incentive for loan officers to do the loans.
1 vote Thank Flag Link Sun Jun 3, 2012
I know this is a old post, however, I just wanted to clarify one thing I saw in this remark.

The HUD $100 down program does not have a 640 credit score requirement. In fact you can purchase using the $100 down program with as low as a 580 score.
Flag Mon Jun 22, 2015
I thought the good neighbor next program was for police, teachers,firefighters and emts only. I'm a nurse so I don't think I qualify. It would be so great if I did!
Flag Sun Jun 3, 2012
Nursehollins... You seem to have received some really good advice. I have helped clients who received GA Dream assitance and I have also closed many HUD deals. I suggest you work with a loan officer who has experience with both organizations. This will cut down on your frustration level as working with both will take time and patience. But, you will close :-) Feel free to call me if you have questions or need my assistance (678) 262-7193.
0 votes Thank Flag Link Thu Jun 7, 2012
nursehollins, you received alot of great answers here. Best with your home purchase.
0 votes Thank Flag Link Mon Jun 4, 2012
Nurse Hollins you can use the Ga, Dream loan. Please keep in mind a few things. You can count on the Georgia dream loan to take a minimum of 60 days, but count on it being longer depending on how quickly DCA can turn the loan around.

HUD will give you 45 days to close the loan, otherwise you are going to need an extension and pay a per diem . make sue you talk to your lender to make sure you are making the best choice.
0 votes Thank Flag Link Sun Jun 3, 2012
YES. That question was presented by me directly to a representative with one of the local asset managers who responded that they frequently have buyers applying GA Dream programs toward their HUD-owned home purchases. Please be mindful, however, that the other answers shown here are correct. HUD-owned homes are offered with only $100 down payment required of borrowers who use an FHA mortgage, but those transactions must close within 45 days or the buyer must request an extension of at least two weeks at a fee of up to $375 to keep the contract to purchase binding on both parties. While GA Dream transactions have been closing much faster recently, please be prepared to request that extension if plans are to use GA Dream to purchase a HUD-owned home.

There's one other thing to keep in mind with regard to the $100 down program. Overbidding is rampant on the nicer properties in Metro Atlanta. A highly desirable property listed for $100K will see bids thousands above list price and the winning bidder will have to bring that difference to settlement. And no, GA Dream may not be used to bridge that difference. So much for the $100 down program on those properties!

There's so much more information that buyers need to know about this program. If you're not working with an agent, I'd welcome the opportunity for a brief phone consultation.

Thanks
Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Sun Jun 3, 2012
If you are purchasing a HUD REO, there would be no need to use Georgia Dream. FHA financing for HUD REO's in GA only requires a $100 Down Payment. With a HUD REO, you only have 45 days to get the loan closed. Sicne the closing attorney for HUD reuquires the closing package at least 5 business days prior to the closing, you dont even have a full 45 days.

A Georgia Dream loan can easily take 45-60 days to closing. A lot will hinge on DCA's turn time for underwriting once they have the fully approved file from the lender. Their turn times can vary from 2-3 days to 2-3 weeks.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Sun Jun 3, 2012
I apologize for all the typos.
0 votes Thank Flag Link Sun Jun 3, 2012
If your purchasing he HUD home using an FHA loan then there is no need for Ga Dream DPA because they now have a 100.00 down incentive that you can take advantage of.
0 votes Thank Flag Link Sun Jun 3, 2012
Consider using the link below in web reference, nursehollins, to find out. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/
0 votes Thank Flag Link Sun Jun 3, 2012
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