Buying a HUD Foreclosure with 100 Dollars!
If you are interested in buying a HUD foreclosure and short on funds, FHA has a solution for you!
FHA has a wonderful program if the property is currently owned by FHA, commonly known as a REO (Real Estate Owned) that allows a borrower to pay only $100 down plus closing costs and prepaids. This is a significant savings over the typical 3.5% downpayment usually required to obtain and FHA loan.
The $100 Down Payment Program Has the Following Requirements:
1. HUD Foreclosed Homes Only! This FHA $100 Down Payment Loan is for the purchase of HUD foreclosure homes.
2. Have to use FHA financing. You cannot use conventional financing.
3. This program is for Owner-Occupants only, not for Investors. You have to sign a form at closing stating you are going to live in the property and not use it has an investment such as a rental property.
4. You still need to have the earnest money of $1,000 for properties listed above $50,000 and $500 for properties listed for less than $50,000. Earnest money will be returned to you at closing as a credit on the Closing Statement.
5. You can ask HUD to pay for closing costs up to 3% of purchase price.
You can call your local real estate agent in the Quad Cities to obtain a list of properties available in the area. The realtor will know if the property qualifies for the $100 down program.
Remember, Allied Home Mortgage can help you obtain the home of your choice even if you have a credit score of 580*!
If you would like more information or have a question about how to get started, you can email me at firstname.lastname@example.org.
*certain restrictions apply. Please look at our blog on Loan Possible.