In this article I will be explaining the $100 down payment program offered by HUD for Owner Occupants to purchase a home. There are many benefits to purchasing foreclosed homes and one of those benefits is the price. However when you buy a hud home with an FHA loan, you will never have to pay more than the current appraised value. If you are interested in learning more about the HUD home purchase process give Cindy Jones and CJ Realty Group a call to discuss the HUD home buying process in more detail.
Hud will take the highest & best bid, and in the case of a tie.. whoever bid first will typically win. HUD homes are sold through an auction process; once the deadline is past and bids are in, HUD reviews its options. You can move in faster if you purchase a HUD home eligible for FHA-insured mortgage because it has already been appraised.
Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). HUD does list the homes for a reasonable value, however, some great deals are available depending on the home and the price negotiated between the buyer and the listing HUD agency.
Generally, HUD homes have an offer period during which buyers may make offers via sealed bids. Postponement fees are required if Hud accepts your Postponement request Form as submitted by your real estate agent. Rentals to low-income families can also be a lucrative way to make money from HUD properties.
The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance on home mortgages. Only qualified real estate brokers certified through HUD have the ability to sell the HUD homes.