Did you know that FHA & HUD offers special financing for homebuyers that are purchasing HUD owned homes? This specialty program, known as the $100 Down Program offers great terms and only $100 down for all HUD owned homes. For normal houses the FHA loan program requires 3.5% down payment, not the $100 down program. This loan is perfect for new first time buyers entering the housing market with little to no money for large down payments. The HUD program is available in most states, Ohio being one of them. The $100 Down program makes government owned foreclosures available for purchase with just a $100 down payment. And, these homes are available with an insured FHA loan for owner-occupants. In addition, monthly payments can be very low thanks to secure fixed 30 year mortgage rates. First time buyers often find it cheaper to own their own home than to rent.
So, what is the catch to the Ohio HUD REO 100 Down Mortgage? The only catch is the property must be a HUD owned home. Search HUD homes here https://www.hudhomestore.com/Home/Index.aspx .Basically a HUD home is a home that was foreclosed on and had a FHA-insured mortgage. HUD pays off the losses of the bank or lender and takes the home back to sell.. thus recouping their losses. It is then offered for sale at market value, based on a recent AS-IS appraisal, meaning, and the market value in its current condition. If you find a HUD home you like, a HUD registered realtor is needed to help set up a showing and to make a bid. HUD homes are listed for sale by management companies under contract by HUD. They are listed and sold through a bid process, and any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf.
Who can purchase a HUD home? Pretty much any home buyer that can qualify for a standard FHA mortgage. If you have the income and credit to qualify for a loan you may buy a HUD Home. HUD Homes are initially offered to owner-occupant primary homes. Following the priority period for owner occupants, first time buyers, etc… it’s then the unsold properties are available to all buyers, including investors down the road. Questions? Please Give me a call at 614 -746-8292
Now let’s discuss some of the benefits of the HUD $100 down mortgage.
- The $100 down loan is only for owner occupied primary residences. The means buyers will not be competing with investors when making a bid.
- The program only requires $100 down payment.
- Up to 3% of buyers closing costs can be paid by the seller.
- The credit underwrite approval process on the $100 Down Payment program is the same as a normal FHA purchase loan.
- If the HUD property needs some minor repairs, HUD will allow up to $5,000 of required repairs to be held in an escrow account. If the property is in need of more extensive repairs in excess of $10000.00 you can still purchase it using a FHA 203K Renovation loan.