HUD Foreclosures Offer Attractive Deal

The Department of Housing and Urban Development (HUD) is offering an attractive deal for home buyers. Currently, a buyer who offers full price for a HUD-owned foreclosure can get financing for $100 down if they use FHA financing. Aside from the fact that these homes are usually priced under market value, this additional incentive can be very helpful for a home buyer that doesn’t have much cash to put down.

The program is even available for those interested in obtaining a 203K Loan (aka a fixer-upper loan). Which is a good thing, because many of these HUD properties are in need of some TLC.

So what’s the catch? Well, you’ll notice that I said USUALLY below market value… Just because a home is a foreclosure doesn’t mean it’s a great deal. “Wh,wh…what?” You ask? It’s true! For example, there are foreclosed homes in our market that have been sitting for months because the bank (usually with the help of the listing broker) has overpriced the home. So, as always, I say… BUYER BEWARE! Or, just use a good buyer’s agent who will BEWARE for you.

Note that a condition of this special financing is that you have to make a FULL PRICE offer. You can often purchase a HUD home at around 10-13% below list price, and HUD will also pay for some of your closing costs, so you might be better off with a different program if you can swing the extra cash.

For more details, and to see listings, go to our Branson Foreclosures page.

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