Saturday, June 13, 2009

Understand the steps to buying a HUD home with $100 down

Things You’ll Need:
•Hud Authorized Realtor - Call Molly Hay for details. 614.581.2086
•Earnest money
1.Step 1

Find a loan officer, bank or credit union, to have them go over your credit and get a pre-approval.

2.Step 2

Have your loan officer fax a copy of your pre-approval to your Realtor. For this program you must be approved for a Fha loan. Make sure you give your Realtor your loan officer’s name and phone number.

3.Step 3

Find a Hud authorized Realtor - Call Molly Hay for details. If you have not done the previous steps, your hud authorized Realtor can help you find a loan officer.

4.Step 4

Now that your Realtor have your pre-approval, you will know exactly how much of a home you can afford. Never go out to see homes with out this pre-approval, it is nothing like falling in love with a home and to find out later that it is not in your price range.

5.Step 5

Ask your realtor to email you HUDS in the area you are interested in.

6.Step 6

When you find the home of your choice you will need to put down $500 -$1000 - $1500 for earnest money. Earnest money shows that you are serious about the purchase of this home now I know that you are asking your self where does the $100 comes in at. Read the next step. Earnest money will vary depending on the purchase price of the home.

7.Step 7

Fha loans are approved at 97%, meaning you have to pay 3% of what ever your loan will be, for example if your loan is $160,000 your down payment will be $4,800.

8.Step 8

With the Fha loan you will no longer have to pay 3% of your loan. You only pay $100! Now that is a great program and it ends September of 2008.

9.Step 9

The $1000 that you put down as earnest money will go towards your closing cost! Hud will also pay 3% of your loan amount towards your closing cost, I told you it was a great program.

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