What? Are you kidding? I can actually buy a Georgia HUD home for only $100 down payment? Maybe - there are a couple of rules but they don't exclude the majority of buyers. Sorry to say that Ken Cook cannot use this program to buy a home but maybe YOU can and if you are an agent I am certain one of your clients can.
As of the time of the publishing of this information there were 1179 properties available in Georgia. There are 57 in Cobb County, 10 in Cherokee County, 106 in Gwinnett County, 93 in Fulton County, 176 in DeKalb, and 42 in Paulding. That's a lot of opportunity but let's take the challenge and work together and move all of these properties buy mid-Summer. Agents, if you are interested in taking the challenge to sell ALL of these homes I will work with you to make it happen.
The important parts are that this is for an owner occupied home only - no investors. The home must be a HUD held REO and the loan must be one of our FHA programs. Those are pretty much the rules. The $100 down is considered an incentive. Novation Mortgage will take care of the paperwork required to convert the purchase to a $100 down payment transaction. Clients should contact Novation Mortgage to apply and qualify for the FHA loan to buy a HUD home with $100 down.
There are a couple of other rules we can fill you in on if you meet the first criteria - owner occupant qualified for an FHA loan program. Agents you simply need to enter $100 as the down payment amount on line 4 of the contract. The mortgage amount and the length of the mortgage should be marked "TBD" and we will notify the buyer of the actual loan amount and terms.
All properties advertised to the general public are eligible for this incentive. You should also be aware that this incentive is available to “Katrina tenants” who purchase a HUD home with FHA financing. If the buyer started out using conventional financing but qualify for an FHA loan program they may switch from their current lender to Novation Mortgage to take advantage of this FHA/HUD combination program.
This program began in October of 2007 and will end when HUD has determined their inventory levels are sufficient to terminate the offer. Selling agents may also qualify for a $500 selling bonus for selling a HUD home using this program. Call 678-946-0100 for more information on the differences in the incentive programs for buyers and agent.
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Ken.
You forgot to mention that HUD will pay up to 5% commission to the selling broker.
That is the incentive for agents to get involved with the HUD homes. The broker has to be an approved vendor, but most large brokerages are.
Selling HUD homes isn't always the easiest thing around because they don't make repairs, but there's always a jewel or two around.