Houses for $100 down!!!

That's all you'll need for a down payment to buy a foreclosure offered for sale by the government. 

This sounds like a heck of a deal: HUD now only wants $100 down to close the deal.

Yes, the U.S. Department of Housing and Urban Development has brought back the $100 down payment plan in Southern and Western states. It could be a tremendous opportunity for some people -- first-time homebuyers or perhaps those who are close to retirement and are looking to downsize to a smaller home. (Some of these are modest homes in locations where jobs may be scarce. Others are large homes in metro areas.)

Summary:

• The $100 down program is available only for people who will live in the home, not investors.
• Your real-estate agent has to submit a bid for the house online.  
• You have 12 months to get in on this deal.
• Your financing must be FHA-insured.
• You might have to have more skin in the game. 
  Explanation: The $100 down payment incentive is only available if the purchase price of the home is equal or less than the appraised value of the home. If you have an accepted bid for over the appraised value of the home you must bring the difference as down payment to the closing.
   

So, what might you buy with $100 down? You can find a database of HUD-owned homes here. (Click on each state in the map to see what's available.) There's quite a range, judging from the descriptions and photos of the properties. And the list can change every day.

Please contact us if you are seeking a home, investment property and financing.

 

Home Affordable Refinance Program Extended

The FHA has decided to once again extend the Home Affordable Refinance Program (aka HARP.) Perhaps now is the time to look into whether or not this is an option for you. It is a program created to help the millions of Americans who have had trouble refinancing due to decreased home values. When it is successful, it has similarities to a loan modification, but you actually get new mortgage with new terms (lower interest and lower monthly payments.)


HARP may be an option if:

• You are current on your mortgage payments (no 30 day late payments over the past year)
• Your home is worth less than what you paid for it.
• Your first mortgage is not greater than 125% of your home's current market value.
• Your loan is owned by Fannie Mae or Freddie Mac.

The best way to find out if you qualify for a Home Affordable Refinance Program loan, is to contact a HARP lender. Not every lender is equipped to assist you. Here is a way to check and see if you quality for a HARP loan through a trusted HARP mortgage lender. Simply complete this mini-application online.