Home Buying in Hermiston>Question Details

Coconut64, Renter in Hermiston, OR

what are the qualifications to buy a hud home. How much $ down on average?

Asked by Coconut64, Hermiston, OR Thu Feb 10, 2011

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7
Talk to a mortgage broker who can help you, there are many different loan programs for HUD home. The Lenders Network would be your best bet to start with.
1 vote Thank Flag Link Sat Oct 5, 2013
HUD homes will not allow for repairs to be made prior to closing which may be required by the Lender in order for funding. This is the main hang up. For example, if there is dry rot from a plumbing leak in the bathroom , the Lender's underwriters must to require that repairs are made prior to closing for a traditional FHA loan. This is a paradox due to the fact that HUD will not allow repairs to be done on the property, with the exception of property clean up that they may order, prior to closing. HUD only allows 45 days to close the deal, and if you choose to do a 203k loan which will include costs of repairs, it will likely take longer than the 45 days. Then a stiff and painful penalty kicks in that is charged per day until closing.

The trick is, that if you like a HUD home, it needs to be an 'all cash' deal where no underwriters are involved, or or it needs to be a home where there are no 'Lender or appraiser required' repairs which means that the home needs to be in very good condition. Hope this helps!
1 vote Thank Flag Link Mon Feb 14, 2011
More information is at the HUD web site, including a site that which show you which homes are listed in your area. http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm

One of the nice things is that they respond very quickly to offers (much quicker than most banks. If you're buying as an investor (instead of to live in yourself), you are "locked out" from offering for 10 days after it's listed, to give priority to owner-occupieds.
1 vote Thank Flag Link Thu Feb 10, 2011
There are two answers to this question. If the home is situated in an area where the HUD appointed servicer (the M&M Contractor) allows the $100 HUD program you cna do an FHA loan with as little as $100 down payment. I don't beleive that is an option in Hermiston but it would pay to check.

Other than that, the home can be purchased with any loan program. If you use USDA you can get 100% financing if you qualify. If you use FHA you would put 3.5% down but you can use the M&M Contractors appraisal so you would not have to purcahse a new one.

I hope this helps.
1 vote Thank Flag Link Thu Feb 10, 2011
HUD homes can be purchased just like any other home on the market. Your best bet is to visit with a mortgage lender to verify the loan type you would qualify for. Most HUD homes need repairs completed in order to qualify for financing but there are rehabilitation loans available with small down payments.
1 vote Thank Flag Link Thu Feb 10, 2011
What about bad credit and no money down can a person still purchase a home.
0 votes Thank Flag Link Mon Jun 16, 2014
Talk to a trusted loan consultant, and let him / her run several scenarios to see what works best for you. No simple answer to this question.
0 votes Thank Flag Link Sat Aug 31, 2013
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