Why HUD Homes?
HUD or the US Department of Housing in Urban Development, began in 1965 as a way to create affordable housing for a majority of Americans. It makes loans available for lower and moderate income families through different programs and HUD itself owns several communities throughout the US marketing them for sale at lower prices and more affordable terms. The goal is for HUD to protect consumers through education, Fair Housing Laws and rehabilitation initiatives. Their goal is to provide adequate living environments for all Americans by developing and improving certain communities.
Because of this, many homebuyers, especially first-time homebuyers and distressed borrowers have chosen a HUD home. HUD homes are to describe a 1 to 4 units in a residential property acquired by the department as a result of foreclosure action on an FHA insured mortgage. Because of this, the HUD department then becomes the owner and sells it for a more reasonable price.
Anyone can buy a HUD home if you qualify for a mortgage however, you must work with a qualified and registered HUD real estate broker in order to bid for the home. Not just any real estate agent is able to buy and assist buyers on HUD homes. This is why using a HUD registered real estate agent or broker is so vital to purchasing this type of home. The reason many people choose a HUD home is for the more affordable option.
Are there drawbacks?
Many people feel that HUD homes might be subject to disrepair but this is not always the case. HUD homes are sold "as is" and typically do not include a home warranty. HUD will not pay to correct any major issues but will typically list the home at a price that is fair to the buyer taking into account repairs necessary. Because of this reason, it is important for all homebuyers to have a home inspection. Because these homes are not previously inspected is crucial to have a professional thoroughly inspect the home making notes of any repairs or damage to the home that could be of concern both now and in the future.
Even though HUD does not offer any repairs on the home they may offer special incentives or an allowance in order to improve or upgrade the property once you own it. Buyers can also ask for HUD to pay for all or a portion of the closing costs as well. This may allow for some extra funds at closing to take care of any damaged items or needed repairs.
How much does it cost?
As with any home purchase you'll need to have a down payment. FHA loans require 3.5% down but there are creative ways to lower this even further. Grants, assistance programs and other plans may be available if you qualify. A good rule of thumb is to have anywhere from 5% to 7% of the sales price of the home, which will include the down payment, closing costs, appraisal and home inspections.
Don Payne and Vision Realty is a Registered HUD Broker
One of the best things about going with Vision Realty is that we are registered and approved to sell HUD homes. Since 1979, Vision Realty has been helping folks buy and sell homes all throughout the Columbus area covering over five counties. Our office stays up-to-date on credentials, rules, laws and procedures, which can change drastically. Our team is only desires to assist and rebuild particular neighborhoods damaged or affected by financial strife and uncertainty of the past decade. Because of this, we have an even higher calling to assist buyers in purchasing and refurbishing HUD homes.
Our agents serve just about the entire Columbus area including the counties of Franklin, Licking, Delaware, Pickaway and Fayette. We covered dozens of ZIP Codes and if you're unsure of a particular town or community please contact our office to see if it's covered.
Because Vision Realty has partnered with the Neighborhood Assistance Corporation of America, hundreds of participants can attend workshops and housing education courses. This is a nonprofit HUD certified homeownership advocacy organization and we are proud to come alongside this association to not only help buyers find the right home but to improve the quality and integrity of neighborhoods throughout Columbus.