“You may buy HUD property with an FHA loan. “The cons are most are not in good condition and will need additional rehabbing before a buyer can move into them,” she said. FHA loans can be used to purchase HUD homes and may help cover the cost of a rehab. Robinson noted that they are sold below market price, but that the condition of the properties can be a problem for buyers. HUD itself sells one- to four-unit residential properties that the agency has taken in foreclosure on FHA-insured mortgages. By protecting lenders against losses, HUD enables home purchases by buyers who may have poor credit or who might not be able to put up a large down payment. Established as part of the Federal Housing Act of 1934, the FHA has since insured more than 50 million mortgages on single-family homes, multiunit buildings and even hospitals. The FHA is the branch of HUD that is most closely associated with encouraging home ownership and increasing the number of available homes. HUD’s programs cover Section 8 housing, community development grants, homebuyer assistance, home rehab work, homeless assistance and combating housing discrimination. HUD consolidated five federal housing and development agencies: the Federal Housing Administration, the Public Housing Administration, the Federal National Mortgage Association (Fannie Mae), the Urban Renewal Administration and the Community Facilities Administration. The legislation enabled the federal government to coordinate efforts to solve the problem of substandard and deteriorating housing. HUD was created by the landmark Department of Housing and Urban Development Act of 1965 as a means of addressing housing inequality in U.S. “Because the homes are sold at a discount, it helps revitalize the areas, keeping vacant homes occupied as many (HUD homes) are vacant.” What is HUD? “They also are sold under the Good Neighbor Next Door program for police officers and other government officials in underserved neighborhoods,” Robinson said. While HUD REO (bank-owned) homes are typically sold online through the HUDHomes website, she explained, sometimes they are listed in the MLS for agents to share with their buyers. It’s essential, then, that agents know how to navigate the paperwork and bureaucracy of a HUD transaction, or know where to get help.Īndretta Robinson, team lead for the Titan Group powered by RE/MAX 10, has experience helping clients purchase homes through HUD. The same is true of agents whose portfolios include homes that were built with federal funding. Fair housing opportunities, neighborhood development and improvement all fall under HUD’s purview.Īny agent who works with a client who has procured Fannie Mae or Freddie Mac loans is effectively working for a HUD client. The United States Department of Housing and Urban Development (HUD) generally remains in the background, despite being the principal agency tasked with administering the nation’s housing needs. Brokers and agents must spread the word that mortgages are available at 4.5% if you apply.When government assistance enters the homeownership conversation, the subject often centers on federal lending giants Fannie Mae and Freddie Mac. For those who haven’t drowned their credit scores, home purchasing conditions are very advantageous. For qualifying homeowners, a Home Protect warranty can also provide discounts of up to 30% on appliance purchases.įirst tuesday take: Buyer’s agents can take advantage of Freddie Mac’s effort to move its foreclosure REO inventory by investigating whether their buyer qualifies for incentive programs such as these.Ĭalifornia’s excessive supply of real estate owned (REO) properties will continue to bulge until buyers regain purchasing confidence. Some HomeSteps REO properties may be eligible for a two-year Home Protect warranty covering electrical, plumbing, air conditioning, heating and other appliances. Purchase agreement offers must be received by Jand escrow must close on or before September 30, 2011. Freddie Mac is offering up to 3.5% in closing cost assistance and a $1,200 buyer’s agent bonus for HomeSteps real estate owned (REO) properties sold to owner-occupants.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |