With the glut of foreclosures on the local market narrowing down your options may seem daunting. However, for many first time home buyers one of the easiest and most profitable ways to purchase a home is to focus on the HUD foreclosure market.
HUD foreclosures are ones that previously had FHA loans on them. Many of them fall into the perfect price range for the first time home buyer. Generally, you will see most of them listed between $80,000 and $150,000. This listing price is usually at a deep discount to as is value and an even deeper discount if you are looking to finance the property with a FHA 203K renovation loan.
Since HUD has an unusual amount of homes on the market right now they have been forced to offer some FANTASTIC incentives to purchase. The best, and most widely used, is the $100 down payment incentive they have been running since 2007. However, recently they have started offering another incentive to buy, a $1000 credit at closing. Yep, only $100 down AND you get $1000 back at closing. In other words HUD is PAYING YOU $900 to purchase one of their homes!
Many HUD homes are in disrepair, but on most HUD offers an escrow account with the money to complete the minor repairs that need to be fixed. On the others we have been using FHA 203K Renovation Loan program to provide the home buyers with a separate escrow account to make any repair they choose. For more information on FHA 203K Renovation Loans and how they work click on my author profile above and read about the how you can use a FHA 203K loan along with the process involved in getting one.
Happy Hunting!
Jonathan Blackwell
FHA 203K Specialist
Hometown Lenders
jonathan.blackwell@hometownlendersllc.com
http://www.203KLoan.net
http://www.atlantaforeclosuretour.net
404-551-3845
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