I've had this conversation a couple of times recently. As a mortgage lender here in Tennessee, one of the loan products I talk about often is the HUD100 loan. It's basically an FHA loan with only a $100 down payment if you buy a HUD owned property.
The program is outstanding, clients love it, agents love it, apparently HUD seems to think its working! But there seems to be a misconception out there. You dont have to go looking for a home in the low-rent district to qualify for this program! The term HUD-owed and the premise of the loan program, which is purchasing a previously foreclosed on house, lends people to think that you have to buy in the low-end area's. That is NOT the case. Over the last couple of years HUD owned properties have increased significantly, in all parts of all towns. The economy hit people of all walks of life. The HUD100 loan isnt income restricted(like HDA), isnt location restricted(Rural Development), you can find qualified properties EVERYWHERE.
Realtors, if you dont know about this, I would suggest checking it out and aligning yourself with a lender that knows the product. And lenders...same advice. And if you are a buyer looking for a home in the Nashville, TN area, I know an EXPERT agent in this type of transaction I would be happy to put you in touch with!
Have a great weekend!
By the way...if you were following me on Twitter before or would like to start, you can now find me @chadmcdowell.
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