HUD FORECLOSURES IN OHIO
What does HUD Foreclosure mean? Many buyers are talking about purchasing a HUD home, but few understand what they are. I have represented buyers on the purchase of HUD homes for many years. I have also purchased HUD homes for my own investments.
HUD stands for the department of Housing and Urban Development. FHA stands for the Federal Housing Administration. FHA has backed over 35 million loans since 1934. If you default on your FHA mortgage then HUD is required to buy out the loan from the Bank who lended the money. The house is then listed for sale by a local broker who works with HUD.
How can you make money on HUD homes?
HUD houses are only available to owner occupants for the first 10 days. After this point it opens to investors. Having purchased a HUD home, I know firsthand the money that can be made on these properties. Often times the property is listed well below normal houses, and then they will routinely accept 10% lower. On average my clients will pick up a property at 30 to 60 percent off. Most properties will require a rehab, but some properties just need a little TLC. Visit my website at www.CRMHOMES.COM to request a list of HUD homes.
Why is an FHA loan in high demand?
Unlike conventional loans, FHA-insured loans require small down payments. With the recent mortgage crisis, conventional lenders are requiring more money down than just 2 years ago. There is more flexibility in an FHA loan than conventional loans in calculating household income and payment ratios. The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment. In most cases, the insurance cost will drop off after five years or when the remaining balance on the loan is 78 percent of the value of the property-whichever is longer.
Who can buy a HUD homes?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.
There are many inside tips to buying HUD homes. You should meet with a licensed real estate agent who has experience with this type of purchase. HUD homes have special rules and regulations that don’t pertain to normal real estate transactions in Ohio. Shoot me an email to Chad@CRMHOMES.COM with any questions.
Prudential Calhoon Realtors
Cell#614-264-9257
Fax #866-217-6172
www.CRMHOMES.COM
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