FROM MY INBOX – HUD Homes
 
It is funny how when we are open things come to us almost instantaneously. I have been working on obtaining authorization to work with HUD in selling HUD homes (government owned homes). HUD homes can only be sold by approved HUD brokers. On January 5th, I received my HUD authorization! This process has taken several months, but I felt it was very worthwhile since all HUD homes were previously foreclosed properties, HUD provides an appraisal and inspection, prices their homes well and offers amazing opportunities to buyers such as the ability to buy with only $100.00 down payment and will often help with the buyers closing costs. That being said I mentioned HUD homes to a lender I work with, Justin Miller, and he forwarded me the following article written by Stacey Sprain regarding HUD homes and the $100.00 down payment currently available (I have made minor adjustments to make her article more market specific).

If you have any questions about purchasing a home in the Miami Area, please don't hesitate to give me a call directly at: 954-862-2631 or to send me an email.

Ellen Bithell, CRS, CREO, SSS (short sale specialist)
This week I decided my topic would be HUD’s $100 down incentive program because we are starting to see a lot more of these deals, particularly in certain areas of the country. These programs include the specific HUD $100 down incentives plus the Good Neighbor Next Door program offered by HUD.

You will find a specific listing of states that are offering the HUD $100 down incentive by going to HUD’s Home Sales Incentives website at http://www.hud.gov/salesincentives/. Right now the states of Colorado, Michigan, Montana, Ohio, Pennsylvania, Utah and Wyoming are listed as offering $100 down payments on HUD homes with FHA financing.

For more information on HUD’s Good Neighbor Next Door Program, which is specifically designated for law enforcement officers, teachers, firefighters and EMTs, you will want to refer to: Click Here>>.

The appraisals for HUD REO properties will be reflected under the following categories:

· Insurable- which are properties that meet FHA’s Minimum Property Requirements at the time of appraisal, are listed in “as-is” condition and require no repairs.

· Insurable with Conditions- which are properties that are found to be in need of additional inspections which can lead to repair conditions. If the additional inspections indicate the need for repairs and the required repairs do not exceed $5000 total, the loan can be processed as a standard 203b program with repair escrows but if repairs exceeding $5000 are required, HUD’s 203k rehab program must be utilized for financing.
**IMPORTANT TIP** Always check the lenders guidelines because many do not allow ANY escrows for repairs regardless of how smart the repair estimate!

· Insurable with Repair Escrows- which are properties that are found to be in need of required repairs. If the required repairs do not exceed $5000 total, the loan can be processed as a standard 203b program with the purchaser establishing a cash escrow at closing to ensure the completion of the required repairs. If needed, the purchaser can finance up to 110% of the estimated repair costs. If repairs exceeding $5000 are required, FHA's 203k rehab program must be utilized for financing.

· Uninsurable- which are properties that do not meet FHA minimum MPR and the costs to repair are estimated to exceed $5000. These properties may only be financed with FHA’s 203k rehab program.

There are a number of website resources I like to refer to in order to learn more about HUD Real Estate Owned properties and sales. I think you’ll find the following sites informative and helpful:

HUD HOME SALE INCENTIVES: http://www.hud.gov/salesincentives/

FAQ ON INCENTIVE PROGAMS STARTING 11/2007: Click Here>>.

HUD HOMES WEBSITE: Click Here>>.

HOW TO BUY A HUD HOME: Click Here>>.

HUD Home Listings by state: http://www.hud.gov/homes/