Hi Tammie,

Check out http://www.southwestalliance.com for the HUD property listings

Buying a HUD home is a little different than a typical real estate transaction.

Before submitting an online bid through a licensed Realtor the buyer must have a pre-qualified mortgage letter from their lender for the loan amount needed. All HUD homes are sold by electronic bid. HUD acknowledges the bid that presents the highest acceptable net offer to HUD, subject to certain restrictions. A restriction example usually is if one of the bidders is an investor and the other will be an owner occupant. HUD favors the owner occupant bids.

There are a few different criteria to look at for HUD home financing. The property will be marked Insurable (IN), Insurable with Repair Escrow (IE), or Uninsurable (UI).

IN - properties appear to meet financing requirements. No obvious repairs are necessary.

IE - FHA loan with required minimum property standard "MPS" repairs to be made by the purchaser totaling less than $5000. The money is put in escrow for repairs. After close of escrow the lender will inspect work as it is completed and distribute the repair monies as appropriate within 90 days. The costs of the repairs are paid by the borrower as part of the loan.

UI - need more extensive repairs after close of escrow and are deemed not eligible for FHA 203b financing. Cash or conventional financing are typically used for this type of property.

New listings are posted on the Friday of each week and are listed for a 10 day bidding period. After the 10 days HUD reviews and picks the best offer. If there are no bids then the property continues to be listed until a bid is received. After 31 days if there are no bids HUD reviews the property and usually reduces the price. Of course the good properties sell in the first 10 days.

Note all HUD properties are sold "As-Is". They will not make repairs for the buyer. If your offer is accepted you will get 15 days to have the property inspected and you will have to write HUD an earnest money check for $1000. The earnest money is applied to the purchase price at closing.

If you offer full price on a HUD home and are the winning bid you can qualify for $100 down payment instead of the typical 3.5% down payment for an FHA loan.

If you have any additional questions feel free to contact me.

Best,
Britta Hinze
817-422-2945
bhinze@kw.com

Hi Tammie

First: You need to get preapproved by a loan professional. That person can help you with what down payment amount is good for you and how much you can afford. As well as explain some of the HUD foreclosure options.
Next: You need to find a realtor that makes you feel comfortable.
Should you find a good realtor first.... I do believe that they will be able to point you to a good loan officer.
Remember, realtors are not going to take you out to see properties until you have been preapproved. So, take your time and get the financing in order first.

Please feel free to ask me any follow up questions!

Tom Burris
DallasLoanGuy.com
214-763-4629

GREAT QUESTION:

In order to work with Texas real estate agent you need to be qualified for a home loan. The qualification will notify realtor on how assist in your Texas home search, structure your offer.

Regarding to % of amount to put down is based on credit scores, employment history, financial records. Downpayment average from 3.5% to 20% Undetermined till all is reviewed.

I am a Texas realtor and loan officer “one stop for all your real estate services”

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