Thursday, March 19, 2009

How to purchase a HUD Home

A HUD home is acquired by the US department of Housing and Urban Development (HUD). If a foreclosed home was purchased with a loan insured by the Federal Housing Administration (FHA), the lender files a claim for the balance due on the mortgage. The FHA pays the claim, and then transfers the ownership to HUD, which sells the home.

-You must use a HUD registered real estate broker

-You must be pre-approved for a mortgage

-Owner occupied bidders receive first priority

-HUD offers three types of properties
FHA insurable homes
FHA insurable homes with repair escrow
Homes that are not insurable with and FHA loan

-You do not have to finance a HUD home with FHA financing

-Before making a big, you must provide your HUD registered real estate broker with the appropriate earnest money in the form of a cashiers check or money order

-Your earnest money check should be made payable to the escrow account of your HUD registered real estate broker

Plus if you’re considering buying your first home, 2009 is a great time to buy—and it just got even better! Thanks to the federal government’s stimulus package, first-time buyers are entitled to an $8,000 refundable tax credit (or up to 10% of the purchase price).

Contact us to learn more and get a list of HUD homes!
Dana M. Garrett - 937-645-6545 -
Dana.Garrett@RealLiving.com
Nanie Ingram – 937-645-6542 – Nanie.Ingram@RealLiving.com

(information provided by Scott Voelkel Vice President of Strategic Mortgage 614-946-1706)

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