Looking to buy a HUD home? FHA recently changed the program around to make it easier for buyers to purchase properties and renovate them. Now buyers can overbid on HUD homes, obtain FHA renovation financing (203K), and they don’t have to bring in the difference!
Heres the deal. For properties that are FHA foreclosures (you can find a list at hudhomestore.com) an appraisal has already been completed on these homes. For buyers obtain FHA financing they are required to use that apprasial. In many cases buyers are offering more than what that home sold for. If they offer more than what that appraisal put the value at and they are obtaining FHA financing buyers would have to bring in the difference. HUD made some changes to the program late in 2013 that now allows those buyers to take out a FHA 203k Renovation Loan and FHA now allows a new appraisal to be completed. What does that mean? Basically, if the new appraisal supports the value the buyer no longer has to bring in the additional cash. They will simply need their 3.5% required down payment. If you find yourself getting ready to bid on a HUD REO give us a call and we can go over all of the different options!
This topic is so important we went to some other industry experts to get there opinion on the topic! Joe Daily Renovation Lending Manager at Amerifirst and David Howard from Century 21 C. Howard comment on the program changes.
One of the biggest myths out there is that you need a bunch of money to buy a house. That’s simply not true. There are a number of No and Low down payment options for home buyers. On top of that you don’t have to be a first time home buyer to access many of those programs. During our next lunch and learn we will cover all the different options out there for buyers looking to minimize their down payment. Over the last couple years its been harder to get a lot of these types of offers accepted. However, with the market going back to a much more “normal” state it’s not nearly as hard as it was just a few short months ago. This is the perfect time for Realtors to reconnect with their past customers and get back out there looking. Come check out this lunch and learn and get a refresh course on low down payment options for buyers!
Here is a list of some of the things we will cover during the event:Visit Jeremy's Blog