HUD OPPORTUNITY .........For First Time Home Buyers Who can Combine FHA's 203k loan

By
Real Estate Agent with Piquet Realty

 

The Department of Housing and Urban Development (HUD)  is making it easier for first time home buyers to get into their home by buying a HUD property at full list price , but provide  several concessions that include a FHA 203k loan for needed repairs rolled up into the mortgage , and  as well HUD will cover up to 3  points  of the closing costs.Buyers are required to live in the home and meet standard underwriting rules and conditions.

This program is only being offered in Florida and a handful of other states and could end up with the buyer only putting up $100 to start the process and hopefully complete the transaction. Many times the amount and type of repairs added to HUD's distressed properties result in substantial price appreciation from the original value placed on the property.House value experts know what repairs/alterations made return value and those that are just added expense returning none or little value .This means buyers should seek expert advise on the type of repairs to be included in the FHA 203k loan program .

For more information, visit HUD’s website.

Comments (6)

Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

The only feature of the 203K program that I don't like is that interest is higher, but then you don't get something for nothing. You should save enough on the price of the house and cost of repairs to cover the extra interest.

Jan 06, 2012 05:59 PM
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

Good luck getting one completed they are not exactly easy.  I was working with a loan officer on 203k HUD since August and after 6 contractor bids for the buyer no one would take the house on as a project!  The banks are very speciific with the 203k rehab paperwork and you gotta play by their rules

Jan 06, 2012 06:03 PM
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hopefully the hligher  rate of interest  is offset with the price of th ome and repairs...thanks for sharing.

Jan 06, 2012 06:26 PM
Michael Correra
Piquet Realty - Brickell, FL

Jon , exactly as you say...and I might add make a decent profit as well .

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Marilyn , I'm sure it was as bad as you say , and it not exactly easy ( government paperwork ,etc.) ....but many buyers think they can just buy any property in the program and make it work.Wrong ! Just like any other property search , due diligence in location ,price point ,attention to the exact expense for the top ROI ,etc has to factored in before the first offer is made .If you still want to try the program I suggest you find out who is successfully doing the program and team up with them in some way

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Ronald ,thanks for commenting .

Jan 06, 2012 07:53 PM
Steve Queen
Bennett Realty Solutions - Bowie, MD
Chosen Realtor for Bowie And Laurel

This change should have been in effect years ago. The problem agents that mentioned this have faced is that the loan does not close because of time aspects, lack of knowledge from the people handling the deal or fear from lenders to start the loan.

Jan 06, 2012 11:53 PM
Michael Correra
Piquet Realty - Brickell, FL

Steve, why do you think lenders have fears to start the program ?

Jan 07, 2012 04:38 AM