Financing a HUD Home Purchase

 

 

 

 

Purchasing a HUD home can be both a great value and a wonderful way to break into homeownership – especially if you’re in an area with a low inventory of single-family homes. If you haven’t considered this option, it’s certainly worth a look, as these homes are typically more affordable and there are several ways to finance the purchase.

FHA loan
You can absolutely purchase a HUD home with a traditional FHA loan. While the FHA does not make loans directly to homebuyers, your lender can qualify you for an FHA insured loan. Benefits of going the FHA route include:

  • Lower down payments
  • Lower closing costs
  • Easier credit qualifying

203(k) Rehabilitation Mortgage Insurance

If you’re looking to purchase a HUD home that will need a good deal of renovation, the FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. This allows homebuyers and homeowners to quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. With this type of loan, homeowners can make property repairs, improvements, or prepare their home for sale.

If you’re interested in checking out HUD home options in the Denver area, start with Metrowest. Our agents are experienced in these types of transactions and would love to work with you!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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