Think about this for a moment. If I told you that you could purchase a 3 bedroom, 2.5 bath single-family house for $145,100 in the Chicago area that appraises for $160,000, with only a $100 down payment on a loan, would you believe me? I recently closed such a deal for a client. For just $100 down, he ended up with a 7% equity stake in his new home; some would call it free money.
There are many opportunities like this out there. My client purchased a foreclosed home directly from HUD – that’s U.S. Department of Housing and Urban Development (for a listing of available HUD homes in your area please visit HUD’s Property Look Up Website). Anyone can purchase these homes, whether they are an investor or someone looking to occupy it themselves. It’s as simple as submitting a bid to HUD for a property through a HUD-registered real estate agent. You can purchase these properties with conventional financing, FHA financing, or cash.
Here’s the best part, though – since October 2007, HUD has offered an incentive on its homes in Illinois and other states. An owner-occupant can utilize FHA financing to purchase a HUD property with just a $100 down payment rather than the normal 3.5% required minimum. Even better, for the first ten days a property is listed, only owner-occupants can submit bids.
My advice is, if you are looking for a new home, go to the above site and search your preferred community for available homes. There are some great deals listed, and if the property is in serious disrepair, no problem! You can obtain an FHA 203k rehab loan to finance all of the work you need and want to do to the property, and with only a $100 down payment. So, find a Realtor who has experience working with HUD, and contact Brad at Ardain Mortgage Corp to help you with your mortgage.
