Buying a HUD home?
Credit History and Score Requirements. For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 620 to qualify for the low down payment advantage, which is currently at around 3.5 percent
HOW DO I BUY A HUD HOME?
HUD homes can be purchased just like any other home on the market. Your best bet is to visit with a mortgage lender to verify the loan type you would qualify for. Most HUD homes need repairs completed in order to qualify for financing but there are rehabilitation loans available with small down payments
HOW MUCH MONEY DO I NEED TO PUT DOWN ON A HUD HOME?
You will still need the required earnest money. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000
WHAT ARE THE ADVANTAGES OF BUYING A HUD HOME?
HUD pays up to 5 percent of the closing costs, saving you thousands. You can move in faster if you purchase a HUD home eligible for an FHA-insured mortgage because it has been appraised. HUD homes may be eligible for repair loans built into the mortgage and buyers may qualify for 3 percent down payments.