This is an FHA lending program that is a win-win. When a home is foreclosed on that has an FHA loan on it the loan is taken over by HUD. HUD checks out the property to see the condition and has an appraisal done to determine the value. Many times in order to sell the property if the buyer gets an FHA loan, the minimum down payment is only 100.00. Awesome, but there is more to the program that makes it even better for the buyer. Typically HUD will accept an offer that has most or all of the closing costs paid for by the seller (HUD) FHA rules are that these costs can be as high as 6% of the sales price. But here is another added plus. Many times the homes are listed and sold for less than the value that HUD appraised it for. The loan can be as high as that appraised amount.
For example.
Home appraises for 150,000
HUD accepts a sales contract for 125,000 but will only allow 3% of that to be paid for closing costs by HUD.
The loan can be for as much as 150,000 to cover the closing costs not paid for by the 3% allowance.
Currently there are lots of homes available in Salt Lake and Utah counties that will work with this program. For more information give me a call or shoot me an email.
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