Any warning about a HUD home?

Asked by Stephanie, San Gabriel, CA Wed Dec 12, 2012

We are pre-approved with conventional loan. We saw a Hud home and this will be our first time buying a hud home. Any advice? Thank you.

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
FHA 203k Mor…, Other Pro, CA,
Fri Dec 14, 2012
Sure ..you can get more advice at the web reference below regarding financing a HUD home.

Best of luck to you
0 votes
Douglas Perez…, Home Buyer, Los Angeles, CA
Wed Dec 12, 2012
Stephanie,
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.

Happy holidays!
0 votes
carlos parra…, Other Pro, Monrovia, CA
Wed Dec 12, 2012
Generally they need repairs and financing may be difficult as a result. If you are handy and can get the money, they can be a good long term investment as often they are priced below market. Find a good agent to work with. The paperwork and process can be cumbersome.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more