HUD Foreclosure Homes - Last Chance for a Low Down Payment Mortgage?
February 10, 2008
With the lending crisis in full swing, buyers have found it extremely difficult to get no down payment or or low down payment mortgages. In December, Fannie Mae notified lenders that new loans in declining markets will now require a 5% down payment, at minimum.
HUD foreclosure homes may be the last chance for some buyers to purchase real estate with little down. Freep.com (from the Detroit Free Press) explains that people purchasing HUD homes with FHA mortgages may still be able to get a home with a low down payment - even in Detroit’s declining market conditions. Here’s a blurb from their recent article:
“There are other things potential buyers can do to buy a home with little or no money down, Terrasi [senior vice-president of Flagstar) said. FHA still requires 3% down, including some closing costs, but there are ways to work around that.
And if you are planning to buy a foreclosed home from the U.S. Department of Housing and Urban Development, also known as a HUD home, FHA offers a $100-down program in Michigan with $2,500 to go toward repairs. It must be an owner-occupied home, a rule that blocks investor purchases, she said. Congress is considering lowering down payment requirements on FHA loans and raising the loan limits.”
If you’re looking to buy a HUD foreclosure as an owner-occupant, now may be a good time to check it out. You may also want to take a look at the $5,000 Detroit HUD Homes.
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