UNDERSTANDING HUD OPPORTUNITIES
HUD, or the Housing of Urban Development is a government agency that offers first time homebuyers some incredible opportunities. Many homes for sale through HUD are homes that have been repossessed or foreclosed on. This means previous owners were for one reason or another no longer able to keep up with the mortgage payments. Depending on the home, some need major repair while others need only minor repair. Now, finding a HUD home in a good location can be challenging but not impossible. Therefore, if you were interested in buying your first home, but find yourself on a tight budget, then you might consider buying a HUD home.
First, you would need to determine just how much home and how large of monthly mortgage payments you can afford. This will depend on a number of factors to include income, debt, credit rating, the amount of down payment, and even current interest rate. If you need some assistance in making this determination, you can find a number of great mortgage calculators online to walk you through the process with ease.
Next, you need to do a little research on HUD’s website (www.hud.gov) to find out your legal rights. This will cover things like the Fair Housing law, which means everyone deserves the same opportunities. In addition, your rights would involve understanding the Real Estate Procedures Act or RESPA, your borrower’s rights, and predatory lending. Once you have completed this research, you need to start shopping around for a mortgage loan. The key here to saving money is to take time for research. This means spending time talking to more than one lender so you can compare costs, interest rates, and then negotiate for the best possible deal.
Now, you want to learn about the home buying process and available programs. As mentioned, HUD has some great programs designed for the first time homebuyer but they are not the only ones with programs. Therefore, check with various lenders, mortgage companies, and financial institutions to find out what programs you would qualify for so you know all your options. Keep in mind that you will find a number of FHA loan programs that offer low down payment options, especially for first time buyers.
You would then start shopping for your new HUD home. For this, you will need to work with a qualified real estate agent, someone who understands HUD housing. Be sure you provide this agent with your wish list, to include location, price, and amenities you would like to find in a home. Spend time going around looking at homes to include fixer-uppers since some of these may only have minor repairs. Once you find the home of your dreams, make an offer. Make sure you work with a qualified inspector, basing your contract on the outcome of that inspection. Secure your homeowner’s insurance, sign the loan papers, and enjoy moving day.