With Ohio being one of the top states for the number of foreclosures, the Department of Housing and Urban Development (HUD) is offering home buyers some great incentives to buy a HUD property in Ohio. I have seen some homes sold for very low prices and there are many opportunities still available.
I helped a client bid on a home recently and HUD was offering $2500 for closing costs and other expenses as long as the buyer is planning to live in the home. The incentives don't apply for investors.
They also have a $100 down payment program available if you use FHA financing. How great is that. Rather than the normal 3% required for FHA, you can put $100 down and buy one of their homes.
Many HUD homes require some TLC and some need a lot of work. To help with the fix up costs, HUD allows you to finance the repair costs by utilizing an FHA 203K loan. Again, this financing is not available to investors. It must be an owner occupied home. So don't let the fact that you don't have funds available to fix up the home deter you from buying a HUD home. Finance the fix up costs using a 203K loan. For more details call Dave Brumley at McKinley Mortgage 791-2700
There are some great deals out there for the buyer that is willing to do some work and will be patient and look for a good buy. It is crucial to get pre-approval before you can submit an offer on a HUD home.
A few more facts about buying a HUD Home,
- Buyers that want to live in the home get 10 days to submit bids before investors are allowed to bid.
- HUD requires a earnest money to submit offers. If the bid is 0 to $50,000 the earnest money must be $500. If the bid amount is $50,001 - $100,000 the earnest money must be $1000. If the bid amount is over $100,000 the earnest money must be $1500.
- Your Realtor/Brokerage has to be signed up to submit bids to HUD. ReMax Elite is signed up and ready to help you.
If you have any questions or would like to learn more about the benefits of buying a HUD home give us a call at 513-766-9099.