Tehama Country Real Estate

Tehama Country Real Estate – 3 What Is A HUD Home and How Can I Get One? Real Estate Spotlight By Alex Mason home buyer resource to acquire quality housing at a fair and equitable price. HUD HUD, or the U.S. Department of Housing and Urban Development, offers quality residential prop- erties with single family homes, townhouses and condos backed by federal lending through the Feder- al Housing Administration, or FHA. HUD is a pro- gram that takes control over its real estate inventory, but HUD itself is not a lender. The HUD program is a Washington cabinet agency and exists to bring affordable housing to promote the American dream. HUD acquires the bulk of their real estate inventory from defaulted mortgages secured by FHA lending, and HUD homes for sale may be purchased at fair market value directly from the agency. To get started, visit HUD at www.HudHome- Store.com. HOW TO BUY A HUD FORECLO- SURE HUD does not like to carry an inventory of foreclosed homes, so many HUD bar- gain deals will go directly to auction for a quick sale. HUD homes are sold as-is, but an interested bidder will be allowed to have a home inspector check the property for dam- age. Since HUD does not make any corrective or cos- metic repairs, be sure you have a solid game plan and budget for real estate rehabilitation if you wish to purchase off the auction block. Rehab lending is available from the FHA203k Rehabilitation Loan pro- gram for qualified applicants, or you can plan to have an extra cash reserve to take care of the HUD home reconstruction from your own pocket. FINANCING A HOME WITH FHA LENDING Properties ranging from one to four units may be financed through the government's FHAlending pro- gram for up to 96.5 percent of the home purchase price. FHAlending policies require the home for purchase to be an owner occupied residence, and other require- ments may apply depending on the area where the property is located. homes are an excellent Though some minor restrictions apply, the FHA mortgage lending program is easy to qualify for. Per- sons with low income or bad credit applicants are ideal candidates to be served by the HUD govern- mental agency. In addition, HUD financing is a snap with less than 5 percent of the total purchase price required for a down payment. HUD SPECIAL PROGRAMS HUD special offers and incentives will vary from state to state, but the government sponsored HUD does make every effort to offer special discounts to certain individuals. Firefighters, law enforcement personnel, EMT staff, teachers and other public ser- vice workers may be able to take a substantial dis- count off the asking HUD home price. In addition, non-profit organizations who will re- sell the property to low-income buyers have the chance to purchase HUD properties for pennies on the dollar. Special buyer discounts also apply to FEMA qualified applicants with a reduced total pur- chase cost and mini- mal down payment, and such candidates may also apply for a repair and mainte- nance fund based on a certain percentage of the total sale price of the HUD home. HUD homes look and feel like any other home on the open market and can be purchased in any state, county and city across the country. You can secure your HUD home lending from liberal lending institu- tions such as the FHA or use your trusted bank or local mortgage broker. The official HUD Web site will direct you to current real estate inventory up for sale and may also advise you of local lenders to assist you with an easy-to- secure FHA mortgage application. In addition, www.HudHomeStore.com has the answers to many questions for first-time home buyers, including how to purchase your HUD home and a FAQs page to get you up and running in no time. Alex Mason is a former real estate agent and mortgage bro- ker living in Los Angeles.

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