Kurt and Sheila Real Estate Blog

August 2010 - Posts

• Common Question #8 - How do I know if a property I am interested in is still available?

  There are many HUD owned homes advertised that have recently gone under contract. HUD owned homes have been selling quickly and then come back on the market if the Purchaser didn't qualify so the advertisements for HUD owned homes are often not current. Read More... Posted Tuesday, August 10, 2010 9:51 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #7 - What does it take to qualify to purchase a HUD owned home for only $100/down?

  You will need to qualify for a FHA loan. Most lenders offering FHA loans have a minimum credit score requirement between 600 - 620. FHA loans are offered by many financial institutions but not all financial institutions will make a loan on a HUD owned Read More... Posted Tuesday, August 10, 2010 9:50 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #5 - How does the "repair escrow" work on a HUD?

  In order for FHA to insure the loan on a HUD owned home, the home must be in acceptable condition and pass the FHA approved appraisal/inspection provided by HUD's appraiser. If the required repairs exceed $5000 the home is considered "uninsured". Read More... Posted Tuesday, August 10, 2010 9:49 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #6 - I really want the house, should I offer more than HUD is asking for the home?

  This is a good question. When HUD initially offers a property for sale they almost always offer the property for the FHA appraised value of the home. If you offer over this amount for the property and wish to use an FHA loan; the lender will only lend Read More... Posted Tuesday, August 10, 2010 9:49 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #4 - What improvements are eligible under the Streamlined (k) program?

  The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements Read More... Posted Tuesday, August 10, 2010 9:48 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #2 - Surely there is a "catch" and I can't buy a home for only $100, right?

  Correct, you can't. When making an offer on a HUD home you must come up with earnest money of $1000 on a home over $50,000 or earnest money of $500 on a home under $50,000. Your "Earnest Money" is deposited in your Broker's escrow account Read More... Posted Tuesday, August 10, 2010 9:47 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #3 - Do HUD owned homes need a lot of repairs?

  Some do and some don't. HUD owned homes are foreclosed properties and are like all other bank owned homes in that they vary greatly in condition. When a HUD home requires no improvements to receive an FHA loan it is considered to be "insurable". Read More... Posted Tuesday, August 10, 2010 9:47 AM by Kurt and Sheila Johnson | 0 Comments

• Common Question #1 - Do HUD owned homes that qualify for a $100/down payment only require a $100/down payment?

  Yes, when using FHA lending and you are buying the home as an "owner occupant" (meaning you intend to move into the home to live in it). Read More... Posted Tuesday, August 10, 2010 9:45 AM by Kurt and Sheila Johnson | 0 Comments