Prior to the housing market collapse, anyone who wanted a loan, with financing up to 100%, could get one, thanks to sub-prime lending. However, sub-prime lending has completely disappeared from the market, and is now a distant memory…rightfully so. The new kid on the block regarding mortgage financing is FHA loans. While FHA is not what it used to be, it is still a very appealing mortgage product, even in today’s market. As a matter of fact, it is the preferred choice of mortgage financing for the majority of first-time homebuyers; most loans requiring only a 3.5% down payment, and a minimum credit score of 620…some lenders going down as low as 530.
However, there’s another FHA product that’s even more appealing than the traditional FHA loan noted above; it’s called the HUD $100 Repo Program. In essence, this program allows borrowers to buy a HUD-owned foreclosed property with only a $100 down; that’s right…a down payment of only a $100. That means that you can purchase a property, oftentimes at a below below market value, and literally get it financed by FHA at a 100% and only $100 down. Additionally, HUD provides the buyer with a $1,000 sales allowance that can be used towards closing costs. And for you realtors out there, there’s even an extra $500 bonus that HUD pays the selling broker. What a deal!!!
For more information regarding the HUD $100 Repo Program, and to get a list of available properties specific to this program, visit www.hudpemco.com. Buyers must use a HUD-authorized real estate broker, like ours, in order to make offers on these properties.
This blog is provided by Agape Realty & Financial Services, whose mission is to educate and empower families with relevant and practical information regarding real estate and finances, that can make an immediate difference in their lives. Visit us online at, www.mpowerfamilies.net.
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