Did you know you can purchase a HUD Foreclosure with only $100 Down ?!
HUD Foreclosures are created when someone defaults on a FHA insured or VA guaranteed mortgage. The government is offering this special promotion for a limited time. However, they haven't disclosed when this program will expire. So if you're thinking about buying, now is the time!
HUD foreclosures can only be sold by a HUD approved broker. I am approved and authorized to sell HUD Foreclosures. If you purchase one of these properties using a FHA insured loan, and the property will be your primary residence, then you can get this property for only $100 down!
You can also borrow additional money to rehab the property. The only restriction is that the purchase price plus the rehab amount must not exceed your maximum approved mortgage amount.
I know you're thinking there must be some catch. But there really isn't. However, there are other out of pocket expenses when purchasing a home. So, let's look at an example:
Buyer Barbara has found a HUD foreclosure for $65K. She has a 620 middle credit score and a verifiable income of $40K. She has been approved for a mortgage of $100K. She was referred to Mark Killion by a good friend. He told her that she could buy this home for only $100 down. But unfortunately, a down payment isn't the only cost involved when buying a home. Buyer Barbara also needs to pay for an appraisal, a lawyer, and offer earnest money with her offer. Mark also recommends she buys a home inspection. So, here's the estimated breakdown:
Appraisal: $300 Lawyer: $400 Earnest Money: $1000 Home Inspection: $300
So, in this example, Barbara's total upfront expense would be: $2000.
However, Barbara would get $900 cash back at the closing. This is because she only needed to put down $100. So $900 of her earnest money is refunded at closing! So, her net out of pocket expense to buy this home was only $1,100 (but she needed $2000 to get the deal done).
There are other closing costs involved, but HUD will pay up to 3% to cover those costs.
Also since Barbara was approved for a $100K mortgage, and the house was only $65K, Barbara was able to borrow additional money to rehab the kitchen and install central air! Barbara created instant equity and lived happily ever after :)