HUD Foreclosures!
They are such a great opportunity for Americans that HUD will only let a home owner buy one foreclosure within a two year period of time.
What is a HUD home?It 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. Who can buy a HUD Foreclosure?Almost anyone!If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. They are offered initially to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors. As an investor you can purchase as many as you want. When buying a foreclosure what you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate.
A buyer can use FHA financing, or conventional financing. It is their choice. FHA requires a 3.5% down payment while conventional financing requires a 5% down payment. Buyers can ask HUD to pay up to 3% in closing costs. That's a good deal considering that when buying other foreclosures you can ask... but the sellers don’t like to agree to pay buyer closing costs. FHA loans have been helping American home buyers since 1934. FHA, or The Federal Housing Administration is part of HUD. FHA offers financing on mobile homes and manufactured homes. Either homes with land or those that are located in mobile home parks. FHA offers several types of financing; the $100 down payment program, the repair escrow loan that has less than $5,000.00 dollars in repairs, and the 203K program for those homes requiring over $5,000.00 in repairs. They also offer an energy improvements loan. Some HUD Foreclosures that are located in designated areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, and emergency medical technicians, nonprofit and local governments. There is a Good Neighbor program that offers special assistance for special groups. It is always encouraged to get an inspection after your offer is accepted as all homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.
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