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HUD's $100 Down Process!

   
 
 
HUD's $100 DOWN PAYMENT PROGRAM!

It's back! HUD has brought back the $100 Down Payment Program for a limited engagement! $100, that is all you'll need for a down payment to buy a home offered for sale by HUD.

Yes, the U.S. Department of Housing and Urban Development has brought back the $100 down payment plan. This could be a tremendous opportunity for some people, first time home buyers or perhaps those looking to downsize.

HUD Owned Homes? So, just what kind of home can you buy with $100 down? Some of these are modest homes, some are in poor condition, but many are great bargains, family homes in great neighborhoods. many are large homes perfect for a family. You can find a database of HUD owned homes at www.HUDHomeStore.com . There is quite a range of homes, complete with photos and descriptions.

Don't be concerned if you find homes that look to need some minor repairs or more, there is a mortgage loan program perfect for purchasing these HUD owned homes that need work, it is the FHA 203k Renovation mortgage. If you would like to learn more about the FHA 203k mortgage and how it can work for you call The Boone Crew today at 828-726-9180.

THE $100 DOWN PAYMENT PROGRAM
HAS THE FOLLOWING REQUIREMENTS

1. Good on HUD homes only! The FHA $100 down payment loan is for the purchase of HUD owned homes in their current inventory.
2. You must utilize FHA financing, you cannot use conventional financing or Cash.
3. Owner-Occupants only, no investors.
4. BUT NOTE! You are still required to put up earnest money of $1,000 for properties listed above $50,000 and $500 for properties less than $50,000. Earnest money is just that, they are funds placed in escrow to prove you are earnest about buying the home. Your earnest money will be returned to you at closing as a credit on the Closing Statement. It is possible to get your earnest money back at closing!
5. An Appraisal is supplied by HUD. But, due to the current real estate market, most banks require appraisals over 60 days old to be updated or a new appraisal completed.
6. Loan amount cannot exceed the Full List Price
7. HUD SAYS YOU MUST OFFER FULL LIST PRICE! But, we have
found that they do not enforce this rule.

In addition... this super program allows you to ask for up to 3% seller concession of the agreed upon sales price to apply toward allowable closing costs. Can you imagine possibly purchasing a new home with just $100 out of your pocket. It's true! We have actually had clients who got into their new home with no money out of pocket! But note, It may be possible that the seller's concession amount will not cover all your closing costs. But, some banks offer a buyer credit that may cover what HUD does not. Talk to your lender for specific details.

PLUS, there are several down payment assistance programs in the area for first time buyers (1st time buyer means you have not owned a home in 3 years) depending on the municipality you buy in. Don't let the name fool you, the money these programs provide can go to closing costs too. IF you would like to learn more about these programs and what could be available call The Boone Crew today at 828-726-9180. we have lenders who can get you approved right over the phone!

THE $100 DOWN PAYMENT INCENTIVE
MUST BE ON THE EXECUTED CONTRACT!

The HUD $100 Down Payment Incentive Program has to be on the executed contract presented to HUD's M & M contractor. What this means is that you have to request this incentive when you send the signed contract in. This is why you must work with a well qualified real estate agent who has knowledge and experience working with HUD and their contracts. Do your homework with your real estate agent because you will only have one chance to get this part right!

GET PRE-APPROVED BEFORE YOU
GO OUT HOME SHOPPING!

As mentioned before, if you are going to finance your HUD owned home purchase you must do so with an FHA mortgage. More than likely you will utilize the FHA 203b or the FHA 203k Renovation Mortgage. The FHA mortgage qualification guidelines are some of the most lenient in the industry as FHA allows for higher debt to income ratios and credit qualifications are more relaxed than conventional. FHA is the loan program for most first time home buyers.

If you would like to learn more about FHA mortgages or if you would like to learn about the FHA 203k Renovation Mortgage call The Boone Crew today at 828-726-9180.

Lastly, again, make sure you select the RIGHT REAL ESTATE AGENT! There are many aspects of HUD homes that are completely foreign to many agents. The HUD process is different! From the bid process to the contract, it is not like buying a conventional home. At the Boone Crew we are HUD experts. In fact for the 5th year in a row The Boone Crew was the #1 HUD sales team in the area for 2011.

FOR ALL OF HUD's $100 DOWN ELIGIBLE HOMES..

CALL DEBBIE NOW AT 828-726-9180

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