Here are the different types of special financing you can receive when purchasing a HUD home as your primary residence:
$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.
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