And - I sold it for nearly 20% over the Asking Price!!The FIRST thing you should notice is that, like many other homes, and many other Realtors, in this brisk Sellers market, I did NOT"
How To Buy A Home With A 100 Dollar DownPayment
With the recent housing market crash and the credit crunch the options for buying a home with no or low payment has been pretty much wiped out. But there is one great option still available in some parts of the country and that is buying HUD homes for sale by using the HUD $100 Down Payment Program.
First, we need to discuss what a “HUD home” is. A HUD home is a property that has been foreclosed on that originally used FHA insured financing to purchase the property. The homeowner could not make the payments for whatever reasons and the lender foreclosed on it. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property.
Once HUD takes ownership they will start the marketing process by assigning the property to their Asset Manager in the district that the property is located. The Asset Manager will secure the property and assign it to a Field Manager. The Field Manager will then prepare the property for sale. It is then listed with a local HUD-approved Real Estate Broker. This is when the property is made available to the public for sale.
Ok, now to the good part, the HUD $100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property. The normal down payment for a FHA home loan is 3.5%. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and also to get owner-occupants into the homes. They believe people who own their home will take care of it better than a renter thus improving the neighborhood. This program is only for people who are going to buy the homes to live in. It is not for investors!
Of course this is a government program which means there are some strings attached to the program.
As mentioned above, it is for owner-occupants only.
You have to use FHA financing to purchase the home.
It is HUD homes for sale only, which are homes that have been foreclosed on that was purchased with FHA financing.
Even though you only have to pay $100 down payment you will still need the required earnest money. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000.
This program is not nation-wide; it is currently being offered in Kentucky. You should contact a local HUD approved Real Estate Broker to see if it is currently being offer in your state. A word of caution, you need to make sure that the real estate agent that you use is experienced in buying HUD homes for sale. Buying a HUD home is a lot different then the normal real estate transaction. An inexperienced agent can cost you thousands of dollars.
The HUD $100 Down Payment Program is a great way to purchase a home if you do not have a lot of money for a down payment. It will give you the opportunity to buy a home now while the home prices and the interest rates are low!
Terrry Eibeck and Regional Realty specialize in Residential Real Estate. We have the tools, time, staff and market experience to provide you with professional results!. To see any property listed for sale throughout Northern KY, Lexington-Bluegrass and Greater Louisville MLS give us a call at (859) 620-7653. Visit us on the web at www.nkyHomeHub.com
To search all properties for sale in the Northern KY MLS download my free app by texting 'terry' to 859-780-5527
|Featured properties may not be listed by the office/agent presenting this brochure. Information has not been verified, is not guaranteed and is subject to change. The data relating to real estate for sale on this report comes in part from the Internet Data Exchange program of Northern Kentucky MLS.|
At Regional Realty, we are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.
Terry is the Principal Broker at Regional Realty. He is a motivated Realtor specializing with investors and new home buyers located in the following areas; Alexandria, Ft. Thomas, Ft. Mitchell, Indepe....
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