Did that headline grab your attention? It sure did mine.
It’s true, foreclosed homes currently held by the U.S. Department of Housing and Urban Development (HUD) are being offered from now until October 2012 for only $100 down.
So why offer this ridiculously good deal? Because, like other federal entities, HUD doesn’t like these homes sapping away their funds, so they’re seeking to get rid of as much of their inventory as humanly possible.
By now you have to be wondering, is there a catch to all this? We’d be lying if we said there wasn’t a catch. Several, in fact. Outside of the typical qualifiers — you have to actually qualify for a mortgage, you may have to pay some closing costs yourself, and this offer is only available in certain states — you need to be aware of these stipulations as well:
- Only as-is HUD homes are eligible for purchase with this incentive. (Usually these homes come with a property condition report, but we encourage you to get a home inspection as well before you buy.)
- Your real estate broker or agent must be HUD registered.
- You have to qualify for and use Federal Housing Administration (FHA) financing.
- You have to be buying this home because you will be living in it, not using it for investment purposes.
- The purchase price of the home can’t be more than its appraised value. You will have to pay the difference in cash, minus $100, if you bid a higher price.
- You have to request the $100 down payment offer, as this deal must be on the executed contract. Ensure your agent is aware of this.
- Additionally, you may be eligible to have HUD cover up to 3 percent of the closing costs.
- This deal also applies to FHA 203(k) loans, which “allow borrowers to use a portion of their purchase loan to repair and renovate run-down homes”.
Please be aware that you have to be living in one of two HUD regions in order to receive the $100 down offer. If you live in Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Wisconsin, Wyoming, or Utah, you will need to refer to the Denver Homeownership Center. If you live in Alabama, Florida, Georgia, Kentucky, Illinois, Indiana, Mississippi, North Carolina, South Carolina, or Tennessee, you will need to refer to the Atlanta Homeownership Center.
If you meet all the qualifications for this offer, then we here at Movoto wish you the best in your search. Happy hunting!
Stephanie Huskey is the resident real estate blogger for Movoto and recommends you check out the rest of the blog if you’re looking for more real estate, home owner, home seller, or borrower tips. Interested in getting her advice on your blog? She’s currently seeking guest blogging opportunities so she can share her knowledge with new communities! You can find her over here at Elance.com.
Who is Movoto Real Estate, you might ask? Movoto is an online real estate brokerage based in San Mateo, CA. Our blog has been recognized for its unique approach to city-based research by major news organizations around the world such as Forbes and CBS News.