HUD HOME OPEN HOUSE
What is a HUD Home?
A HUD home 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.
Anyone who has the required cash or can qualify for a loan (subject to certain restrictions) may buy a HUD Home. HUD Homes are initially offered 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.
HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get an inspection from a licensed professional home inspector prior to submitting an offer to purchase.
If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in applying for a FHA 203(k) Rehabilitation Loan. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property.
It is important for buyers to realize that these homes are sold “As Is,” which means that the property may have suffered some damage or may need some repairs. In some cases, money may be offered in escrow to pay for certain repairs when the buyer elects to use FHA financing, but this is not always the case.
HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. While HUD does not provide direct financing for the purchase of a HUD Home, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.
Current HUD Home Sales Incentives for Georgia:
HUD is offering sales incentives on HUD homes that will make these homes more affordable for homebuyers.
- HUD may pay up to 3% of the closing costs for buyers, although this must be negotiated in the bid for the home
- $100 down payments on HUD Homes financed with FHA-insured financing
o Purchasers must be owner-occupants and utilize FHA insured financing. Please contact your FHA lender or HUD approved Real Estate Agent for more information. For specific details on sales incentives available in a state, please visit thewww.HUDHomestore.com or www.SageAcq.com to view available properties.
Top Reasons you should be Pre-Qualified before starting your home search!
1. Gives you more negotiating power:
Sellers may be more willing to accept your offer & negotiate the prices because you’re pre-qualified and are deemed financially responsible to take on a mortgage.
2. Realtors will require it:
Most Realtors require you to be pre-approved before they spend their valuable time showing you homes. They want to know what you can afford, so that they can show you appropriate homes in your price range.
3. Speeds up the Closing Process:
Having already sent in your income, asset and other personal information to your Mortgage Advisor helps speed up the loan process and gets you to the closing table faster. This is especially helpful when you need to move earlier or in some cases when a sellers needs to close fast. This could be the determining factor in your negotiations with the seller!
Below are three Lenders who would be glad to work with you
on getting a loan approved.
HomeStar Financial Corporation
Cell 404.597.5662 | EFax 678.623.0444
Apply online: http://www.homestarfc.com/jeffwilmoth
Sr. Loan Officer NMLS # 206864
Apply online at: www.myprospectmortgage.com/mthompson
Licensed Mortgage Advisor
Give me a call with any questions you might have
& once you are approved to go house hunting
Kelley Kesterson - RE/MAX Results - 678-854-0060