When the search begins to find a new house, there are many to choose from and properties
commonly listed by the Department of Housing and Urban Development are no exception.
Finding HUD listings
is very simple. Palmdale and Lancaster have the most HUD listings, but you can sometimes find properties in Lake Los Angeles, California City, and Littlerock,
just to name a few.
Almost everyone knows about bank repos, otherwise known as foreclosures, and that they can be pretty good deals. However, many people do not consider HUD homes when they begin to look for a new house. Individuals who investigate HUD homes quickly learn that they may qualify for certain programs, there are not as many buyers to compete with, the savings are usually greater than most other traditional purchases.
Many HUD homes can be purchased with $100 down with a $1,000 deposit for purchases under $50,00 and $2,000 for purchases over $50,000. In other words:
$100,000 HUD FHA loan deposit: $2,000 with $100 down: $2,100.
$100,000 FHA regular down: $3,500 with $1,000 deposit: $3,500.
HUD houses are easier to put offers in on. You fill out simple paperwork and then your agent will submit a bid for you online, which only takes 2-3 minutes. Once you get an offer accepted, your real estate agent has 48 hours to get the rest of the paperwork into HUD, so you will have to meet with them the day it gets accepted.
HUD houses also allow buyers the option of getting a 203K loan, which allows a purchaser to obtain a loan at least $10,000 above the purchase price of the property in order to fix the property up. So lets say you bought a house for $100,000. You want to do some painting and other repair work, so you ask for $10,000 added to your loan. You are still buying the house for $100,000, but you owe the lender a total of $110,000 because you received extra money for repairs and improvements.
The Good Neighbor Next Door program is available to law enforcement officers, K-12 school teachers, EMT and firefighters. HUD began this program to help revitalize areas where HUD homes are located. HUD offers a substantial benefit of 50% off the listing price of the homes as long as the buyer is willing to reside in the property for 36 months before moving.
Before you can qualify for many of these benefits, you want to make sure your lender can do HUD loans and finance almost the entire amount of the loan, and even be able to provide a 203k loan. If your lender cannot provide these programs, you will need to find a lender who is HUD approved. Contact an agent for more information on Antelope Valley HUD Homes, or HUD Homes in your area.