$100 Down payment HUD Home Financing in Phoenix – The 2,000.00 Mistake

$100 Down payment HUD Home Financing in Phoenix – The 2,000.00 Mistake

You probably all know what a HUD Home is and the existence of one very special HUD Home Buying Program, the infamous “100 Down Financing” Program.

There are so many how-to guides and “special reports” floating around on the internet that I will spare you with all the details on the how, who what and where of buying a HUD home, I rather point you to the source: The website of the US Department of Housing and Urban Development (for general info) and Michaelson, Connor and Boul who is a primary contractor to the Dept. of Housing and Urban Development providing marketing and management services of HUD owned residential 1 to 4 unit properties in Phoenix and all over Arizona

Right now, in this turbulent market most rules have changed and what used to be possible is no longer. Forget about “all the experience” you have. Right now is the time to check guidelines and to keep tabs on what is changing – and if you are a REALTOR selling HUD homes helping your clients taking advantage of HUD’s special programs, please read the fine print.

photo credit: Joseph Robertson

We had recently a situation where a real estate transaction almost fell apart due to an oversight. And no this is not a post to bash real estate agents, this post is merely to make you aware that now is the time to watch every deal like a hawk.

A client was pre-approved for the $100 down deal and the contract was written for a HUD home. The client over-bid the price in order to secure the home.

The REALTOR actually was giving good advice based on the competitive price-point of the property. You know a $58,000 house with these low rates look pretty attractive and to contrary beliefs, there are still some cash-buyers on the loose, even in this market.

The detail where this deal almost went sour was when the agent presented us last-minute with the fact that the HUD home was overbid. We found out through many HUD updates (they are not communicated very well) that Hud will actually not extend out this $100.00 down program if the property is over-bid. What was a $100.00 down payment instantly became a 3.5% down payment. What a costly mistake, this minor oversight of the agent might have cost the buyer a chance owning a nice home.

Let’s do ourselves a favor and keep reading the fine print.