HUD Offers REO Homes for $100 Down in Select States (DSNews)

[chill_wind]

HUD Offers REO Homes for $100 Down in Select States
10/24/2011 By: Carrie Bay


HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.

In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.

The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

(snip)

HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.

Plus article says HUD will help with closing costs in most cases. List of eligible states from the link:

Arkansas
Colorado
Iowa
Kansas
Louisiana
Missouri
Minnesota
Montana
Nebraska
New Mexico
North Dakota
Oklahoma
South Dakota
Texas
Wisconsin
Wyoming
Utah
Alabama
Florida
Georgia
Kentucky
Illinois
Indiana
Mississippi
North Carolina
South Carolina
Tennessee
Caribbean




See more:

http://www.dsnews.com/articles/hud-offers-reo-homes-for-100-down-in-select-states-2011-10-24

[Liberal_in_LA]

1. Caribbean?

[Demeter]

4. Second home!

Snowbirding, here I come!

[Liberal_in_LA]

16. yep

[Demeter]

18. Carribean is Puerto Rico

69 properties available. Nothing in US Virgin Islands.

[TheWraith]

5. Puerto Rico and the US Virgin Islands. nt

[Liberal_in_LA]

15. oh ok

[chill_wind]

11. Must be "owner-occupant" but

I don't know the rules about rate of occupancy (whether a few weeks months of year would satisfy etc) Mostly I think that means you can't turn it into an investment property or rental (absentee landlord).


eta- spelling edit

[TheWraith]

12. Right, that's designed to prevent people from buying properties for investment.

Don't quote me, but I *believe* that the definition of "occupancy" is usually 6 months out of the year. So you could swing it if you had the money, but it would be difficult.

[chill_wind]

23. Thanks.

It still seems it still could open up so many possibilities. In my urban area, so many of these properties need work, but a lot of young people have that kind of energy. My son looked at a potentially really nice property for his family around the corner from me (some of the plumbing had been stolen :-( but he could have totally done what was needed. He wanted to do a cash deal and had some money coming but it came up on the market just a couple weeks before he would have the down payment and the rest. For $100 he would have totally jumped on it. (It didn't last long, as it was though, and today it's fixed up by some family with lots of TLC and work done was very, very nice.)

[TheWraith]

24. I agree. Plus it benefits both the new owners and the neighborhood.

It would be great for a lot of young people. I wish I had the cash to do something like this, but New York isn't covered at the moment, and I don't have a reliable cash flow anyway. But in general there's a lot of potential, and having homes reoccupied benefits the property values of the neighbors. Plus the municipality, since those homes are back paying property taxes instead of sitting empty.

[chill_wind]

27. Exactly.

My mid-western state isn't among them either. Sure would be nice to have the cash-flow for even a tiny little place in Florida or southwest somewhere for the snow months, though. It could be very small and modest. I wouldn't require much at all :-)

[shanti]

26. LOLOL!

i did a double take on that one too!

[Demeter]

2. Why not Michigan?

We've been in depression since 2001. that's 10 YEARS!

[valerief]

3. Why not all states? nt

[TheWraith]

6. At first guess, they may be doing it only in the states with highest foreclosures...

Or there might be state laws which interfere in some places.

[Shagbark Hickory]

7. Oh that's a great idea.

:sarcasm:

[TheWraith]

8. Would you like to offer up some actual information-based commentary?

Or was your purpose just to swing through and bash the feds for actually trying to do something?

[Shagbark Hickory]

9. What could go wrong?

:sarcasm:

[TheWraith]

10. So I'll take that as "No, I have only general negativism and anger." nt

[Shagbark Hickory]

13. That's an understatement. n/t

[Kennah]

14. No one with a FICO score below 800 and 20% down need apply

[TheWraith]

20. Did you even read the headline? It says as little as $100 down.

That's the entire point. People with 800+ credit scores and 20% down don't need help buying houses.

[Kennah]

22. I was being facetious about the 20% down, but it would be interesting to see credit requirements.

[shraby]

17. Question: What does REO stand for? Not familiar with the term.

[TheWraith]

19. It means Real Estate Owned.

In actual English, it means properties which are owned either by a bank or by the government, as the result of a default on a mortgage or taxes.

[shraby]

21. Thank you.

[valerief]

28. All I can think of is REO Speedwagon. nt

[chill_wind]

25. HUD portal- home listings, faq files more:

http://hudhomestore.com/HudHome/Index.aspx

Buying a HUD home

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/reobuyfaq