Are HUD Homes Still Good Deals Now That Incentives Are Gone?
You may have heard that FHA discontinued some very valueable incentives to buy Columbus OH homes for sale owned by HUD. The $100 down-payment FHA loans and the $2,500 incentive for owner occupants are gone. Many people have asked me, if HUD homes are still good deals and worth pursuing?
In my opinion, the answer is YES!
Here are some reasons why:
- HUD homes are typically offered at a steep discount compared to similar listings in the same subdivision. Even if you offer more than the asking price, most of the time you still get a terrific deal!
- HUD provides detailed information about their houses in the Property Condition Report (PCR) which is published as part of the listing.
HUD will test for lead based paint and cure any conditions for the purchaser if he/she obtains an FHA 203(b) loan for the property.
- HUD homes are offered at appraised value, taking into consideration the condition of the property and the sales activity in the neighborhood.
- HUD will allow a closing cost contribution of up to 3% of the gross purchase price of the property. No credit will be given if the closing costs are less than the amount asked for by the buyer.
- HUD properties are offered with a bid deadline, so you will know within 48 hours of submitting an offer, if you are the winning bidder or not! No need to wait for months to get the Sheriff's deed of a bank owned property recorded or to get an answer from a short sale lender.
- HUD homes are typically free and clear of any liens. It is the buyer's responsibility to check for delinquent sewer charges or past due HOA fees. Your real estate agent can help with that!
- HUD allows buyers with FHA financing to borrow money above and beyond the purchase price and escrow for certain repairs, such as installing sinks, faucets, toilets or repairing broken windows. No repair escrows are permitted for REO, VA or short sale transactions.
- HUD allows 45 to 60 days to close your loan. Most of my buyers can get it done within a month!
The selection of Columbus HUD homes is great and I would love to help you get a property into contract before the April 30, 2010 deadline so you qualify for the first time home buyer or existing home owners income tax credit! Call me now at 614-975-9650 and let's talk!
Thanks for reading the OhioPrettyHomes.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.
(614) 975-9650 http://OhioPrettyHomes.com
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