$100 Down Program – You can purchase a HUD Home with only $100 down! While the buyer is still responsible for the earnest money and must submit to typical FHA lending guidelines, this is a great program for first-time home buyers looking to purchase a home.
Good Neighbor Next Door (GNND) – Designed to enhance urban communities, this type of financing offers discounts to firefighters, EMT’s, police and teachers. They receive 50% off the property list price and require only a $100 down payment. There are some minimum guidelines, though. The property must be located in a designated revitalization area, and the buyer must live and work in the same county as the home. Also, the buyer must live in the home for at least 36 months.
203(B) Repair Financing – If the HUD home you are looking at needs under $5,000 of repair work, you can finance the cost by using the 203B loan. This is available on 1-4 unit single family real estate, manufactured housing and condos.
203(K) Streamlined Financing – Allowing for up to $35,000 in repairs, this loan was developed to address properties in need of smaller repairs. This includes repair, replacement and upgrad as well minor remodeling and even painting. You can also finance appliances (not to exceed $2,000) with this loan.
Energy Efficiency Mortgage (EEM) – Aimed at increasing energy efficiency, this loan allows buyers to finance 100% of a cost effective “energy package”. The cost of the improvements, including maintenance, is less than the present value of the energy saved over the useful life of those improvements. Plus, an EEM may be used with 203(B) and 203(K) loans.
Web Reference: http://fhamortgageinfo.com/
Contact your lender and ask him/her to walk you through the process. Also, make sure you work with a broker that is familiar with HUD homes, she/he will need an access key, but it sounds like you already determined which one you like and want.
Even the bidding process is both easy and tricky. The entire process is very different. And you must use a HUD registered broker to bid. But just because they are a HUD broker, you need to make sure they have done HUD transactions within the last 12 months.
You can go on the hudhomestore.com website and look for brokers in your area. Just make sure to ask experience questions when you speak with them.
Any questions feel free to call me or email me.
Licensed Mortgage Banker
Diamond Residential Mortgage Corporation
I believe I know what was confusing you. HUD AQUIRES homes from FHA loans that were foreclosed but absolutely does NOT require a buyer use an FHA loan to purchase a HUD home. Below I have copied and pasted a definition directly from the HUD website and below that is a link. I recommend you peruse their website and you might find some useful information. For example, if you are a police officer, firefighter, EMT, or teacher you could qualify for a *50%* discount on the list price of the home!
"What is a HUD Home?
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim."
Best of luck in your search and please call me if I can help you further.
Stephanie Scott, Agent at Coldwell Banker
Nick Radakovich Home Sales Realty
Purchasing a HUD home with comventional financing is possible depending on the condition of the home. Some HUD homes require repairs and would not meet Conventional lending standards. We would be glad to answer specific questions that you may have about the condition of the home and whether it would pass Conventional guidelines.
Feel free to contact us directly at firstname.lastname@example.org
Illinois State Manager
Crosscountry Mortgage, Inc.
847-252-7900 xt. 5515
You can purchase a home using any kind of financing you wish. Now, there are some properties that require certain issues to be fixed before you buy or after the purchase. These type of homes require a special type of financing called "Rehab Loan". If this home is in need of repairs then you might be reading a requirement for an FHA 203k loan (Rehab Loan). Although FHA does a majority of these loans there are also many conventional rehab loans available.
If you still need more help please feel free to contact me. Good luck!