There are currently great opportunities available to individuals looking to purchase HUD homes in the state of Georgia. There is even a $100 Down Payment Incentive – Available to Owner Occupant Buyers using FHA financing.
No, only properties advertised to the general public with a list date of January 4, 2008, or later, are eligible for this incentive. Any property identified with a list date prior to January 4, 2008 will not be eligible for this incentive. Properties advertised through HUD’s Good Neighbor Next Door programs are NOT eligible for this incentive.
No. the $100 down payment option is available for owner occupant buyers only.
No. Nonprofit organizations have established discounts that are already in place. This incentive is not available for use by nonprofits.
Yes. The $100 down payment incentive is available only to owner occupant buyers that choose to use FHA financing to purchase their home.
Yes. So long as the property meets the eligibility requirements for the incentive, buyers can change financing and still take advantage of the $100 down payment incentive.
No. Using the $100 down payment incentive has no bearing on the calculation of the net sales price.
No. FHA guidelines require that the buyers still have to bring in the “overbid amount” in the form of cash as part of the down payment. Obtaining a second appraisal to justify the overbid to receive the $100 down payment incentive in NOT allowed.
At this time, HUD has not published the length that this incentive program will be in effect.
Government Mortgages are mortgages that the government will pay off if you cannot pay your mortgage. Basically, the government is telling the banks to finance your home purchase, and if you cannot pay your mortgage you will lose your home and it becomes a property of the state. This property is then managed by HUD who then outsources the selling of your property to their parties such as PEMCO. Mortgages backed by the Veterans associations (VA), Federal and Housing Administration (FHA), and Rural Housing Service (RHS) are examples of government backed loans that may be available to you. Please contact us for more information and get quality, no-biased information as to the possible routes that are available to you.
When you obtain a government backed loan and you cannot make your payments, the bank forecloses. The government will step in and pay off the bank for what is left on your mortgage. The government now owns the property, and hence it is known as a HUD Home. The Government does not have the time, expertise, or recourses to manage all of the foreclosed properties that they have to deal with. As a result they will outsource the marketing and management of such properties to third parties such as PEMCO in Georgia.
If you can come up with the resources (cash or loan) to buy it, then you qualify. However, there may be limitations that will be outlined to you. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.
If you are planning on buying a HUD property, you may be making a great decision. The Government is not really interested in making a profit on the properties. Since the real estate collapse, the government has been trying to keep foreclosed properties from decimating neighborhood home values. They are more interested in selling the property for the outstanding balance of the original loan.
Contact us and we will send you HUD houses and other properties that will best meet your needs and lifestyle.
The clear cut answer is no. In the state of GA the first 12 days during which a property is on the market, it is only available to owner occupants: people who plan to make the house their home for at least 1 year. After 13 days on the market anyone, including investors, can bid on HUD homes.