Buying a HUD Home - Part 1 - BUYER INCENTIVES

Now that we have discussed what a HUD Home is and what it is not, now it's time to let you in on how you can purchase a HUD owned property.

First and foremost, purchasing a HUD Home is not a whole lot different than purchasing any other property,  There are some differences in the initial offer process and their are many incentives that are available for purchasers. 

Let's look at the incentives that are available from HUD.

Good Neighbor Next Door

On many HUD owned properties, HUD offers an incentive to Police Officers, Firemen, Emergency Medical Technicians and Teachers.  The properties that qualify for the Good Neighbor Next Door Program are generally in economically disadvantaged areas. 

A prospective buyer who works in one of the qualifying fields is eligible for a 50% discount from the list price as an owner occupant purchaser.

• The purchaser must be lender qualified at the list price of the property.
• The purchaser must be an owner occupant
• Must live in the property for a minimum of five years after the purchase of the property.
• Must NOT have previously purchased a property under the Good Neighbor Next Door program

$100 Down

Must HUD owned properties are eligible for a down payment of $100.  The purchaser must obtain FHA financing and be an owner occupant.

Repair Escrows

Many HUD owned properties have a repair escrow.  When a property requires less than $5000 worth of repairs to qualify for FHA financing, HUD will offer a repair escrow to correct items that will allow the property to obtain FHA financing.  Repair escrows are permitted only with FHA financing.  The escrow amount is added to the purchaser's mortgage.  The purchaser must perform the repairs after closing and the escrow amount or actual amount of the repair, whichever is less, is released by the lender after the repairs are complete.  Repair escrows are only offered with FHA financing are properties  that are listed "Insured with a Repair Escrow (IE)" and are only available to owner occupants.

As you can see there are a myriad of buyer incentives available to owner occupant purchaser's.  Bo Evans Realty uses their twenty years experience in the sale of HUD owned properties to assure that their purchasers understand and are able to use every incentive that may be available to them.  Give us a call at 1-800-209-4843 or email boevans@knology.net for more information.