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HUD-foreclosed
properties offer tremendous buying opportunities, especially for
first-time homebuyers. The reason is that a HUD property usually
requires repairs. Because of this, the prices of HUD homes are
generally lower then homes found in perfect condition. In
addition, purchasing a HUD home gives you the opportunity to
take advantage of low down payment financing and reduced closing
costs.
Not unlike most
government programs, however, purchasing a HUD foreclosed
property can become a nightmare without knowing all of the
policies, procedures and financing options.
As specialists
in the field of government financing, American United's
government lending division can guide you through the entire
process of purchasing a HUD home, making sure that you meet all
of HUD's requirements and time restrictions. And because
American United offers FHA 203(k) & 203(b) financing, our
clients enjoy the benefits of 3% down payment and options to
finance repair costs, all at low FHA rates.
Getting Pre-Approved to Buy HUD Properties
Before entering into a sales
contract, HUD requires that you submit a letter of pre-approval
from your lender stating that you qualify for enough financing
to purchase a HUD home. Where any lender can give you a
pre-approval letter, lenders that do not offer FHA 203(b) or
203(k) financing typically are unfamiliar with the policies and
procedures of buying a HUD home. Especially lenders that are not
HUD approved. Therefore, when choosing a lender its important to
choose an experienced HUD approved lender that offers both the
FHA 203(b) and FHA 203(k) loan programs.
As experts in the field of
government lending, American United makes purchasing a HUD home
easy for all our clients. To obtain a pre-approval,
apply online
or contact us at (800) 555-2035.
Frequently Asked Questions About HUD Homes
1.
What is a "HUD Home"?
Answer:
When someone with a HUD insured
mortgage can't meet the payments, the lender forecloses on the
home
2. Who
can buy a HUD home?
Answer:
Anyone! If you have the cash or can qualify for a mortgage, you
can buy a HUD home.
3. Are
HUD Homes meant for people with low incomes?
Answer:
HUD homes range in price, but most are affordable for
low- and moderate-income Americans.
4. Is
it true I can get a HUD Home for a dollar?
Answer:
No. HUD sells homes at market value - that means that the
price is set based on the price of similar homes sold in the
area.
5. If
the HUD Home needs repairs, will HUD make them?
Answer:
HUD Homes are usually sold "as-is," without warranty. That means
that HUD will not pay to correct any problems. But even if a HUD
Home needs fixing up - and not all of them do - it can be a real
bargain! For example, HUD's asking price on the home will
reflect the fact that the buyer will have to invest money to
make improvements. HUD might offer special incentives such as an
allowance to upgrade the property, a moving expense allowance,
or a bonus for closing the sale early. And keep in mind that on
most sales, the buyer can request HUD to pay all or a portion of
the financing and closing costs. In addition, American United
can help you finance all the necessary repairs through HUD's FHA
203(k) loan program. See the
FHA 203(k) program highlights for details.
6. How
do I buy a HUD home?
Answer:
Through American United's Realty Referral Network, our Realty
Partners can assist you with your BID submission.
Normally, HUD
Homes are sold in an "Offer Period." At the end of the Offer
Period, all offers are opened and, basically, the highest bid is
accepted. If the home isn't sold in the initial Offer Period,
you can submit a bid any business day. If your bid is acceptable
to HUD, your real estate agent will be notified, usually within
48 hours.
When you buy a
HUD Home, HUD usually pays the selling agent's commissions. HUD
will pay a total sales commission of up to 6%.
7. If
my bid is accepted, then what happens?
Answer:
Your American United Lending Partner along with your real estate
agent will help you through the paperwork process. You'll be
given a settlement date, normally within 30-60 days, where the
transaction will occur.
8. How
can I find out what HUD Homes are for sale?
Answer:
Right here! We update our lists of HUD Homes for sale
every day. If you see one that interests you, contact us, and a
real estate agent from our Realty Referral Network will
immediately schedule an appointment for you to gain access to
the property. See our
Hot Properties section for HUD homes.
9.
Does American United charge a fee
to assist me in purchasing a HUD home?
Answer:
No. American United will guide you through the process of
purchasing a HUD home at no charge. As Your partner in home
financing™, we wouldn't have it any other way.
10.
How can I get a loan to buy a HUD
Home?
Answer:
HUD doesn't make loans directly. You must apply through a HUD
approved lender like American United. And since we specialize in
HUD financing, we make purchasing a HUD home easy. Click here to
Apply on Line or contact us at (800) 555-2035.
11.
Can I buy a HUD Home as an
investment?
Answer:
Most HUD Homes are initially offered on a priority basis
to owner occupant purchasers (people who are buying the home as
their primary residence). Following the priority period, unsold
properties are then available to all buyers, including
investors.
12. Is
there anything else I should know about HUD Homes?
Answer:
We encourage every homebuyer and homeowner to be a wise
consumer. If you have any additional questions and/or concerns
about purchasing or financing a HUD home, call us at (800)
555-2035 or e-mail your question to
info@americanunited.com. HUD foreclosed properties offer
tremendous buying opportunities, especially to first-time
homebuyers. We look forward to helping you purchase your first
HUD home.
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