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About this program
If you’re looking for a great deal when you buy your new home, you should look at HUD homes. They have a program that allows you to buy a HUD home with only $100 down. You will be required to put up some earnest money, but it will be refunded at closing if you get an FHA loan and your offer is accepted. For homes below $50,000 the deposit is $500 and for homes over $50,000 the deposit is $1,000. HUD pays up to 3% of your closing costs which usually is enough to cover them. Normally an FHA loan requires 5% down, but with this special program, you only need to put down $100. Talk about saving some money!!!
What the heck is a HUD Home?
A HUD home is one that had a FHA-insured mortgage which has gone into foreclosure. HUD pays off the bank and then puts the property up for sale to get some of their money back. The price is set from a recent AS-IS appraisal, which is the price the house would most likely sell for in today’s market in its current condition.
So how do HUD homes get sold?
Any real estate broker who is registered with HUD can submit an offer for you. The house is sold through an auction process where all the bids are sealed. To qualify for the $100 down program, the offer must be for the full sale amount and the bid will go to the buyer with the highest offer.
And who gets to buy a HUD Home?
Anyone who qualifies can buy a HUD home. Initially, bidding is only open to owner occupied buyers; however, if no bid has been made after a period of 10 days, properties are made available to all buyers, including investors.
So how do I buy a HUD home?
Buying a HUD home is a lot different than buying a regular house. For a conventional purchase, usually you write up an offer, the seller looks at it and then accepts it or makes a counter offer. As stated before, HUD homes are sold through an auction. You can bid anything you want, but the home usually goes to the highest bidder and if you want to take advantage of the $100 down program, you must offer full price.
OK, I’m in. What do I do now?
1. First you have to get pre-qualified. You will need a letter from me as your lender saying that you meet the guidelines for purchasing the home.
2. If you are using the $100 Down payment program, you will need to make sure that you have been through the checklist I provide!
3. You need to provide a cashier’s check for your earnest money.
4. You bid on the property using my experienced agents.
5. The bid gets sent in on an electronic bidding website.
6. When the auction closes, your Realtor checks to see if you have won.
If you are the one with the winning bid, we will proceed with your financing. This should move quickly since we pre-qualified you.
I’m ready, What’s my next Step?
Give my office a call and let’s get you pre-qualified. It only takes a few minutes and will be well worth your time. Then I will match you up with one of my qualified Realtors and you can start looking for your house.
Call me today before the Government closes this program. Guidelines change daily so you may not have much time.
I look forward to hearing from you.
Sincerely,
Alyce Lentz Realtor
Brokers Realty.Com
717-554-3780
alyce@brokersrealty.com