Monday, October 4, 2010

HUD Offers Homes in DFW for 50% Off List Price

Today’s real estate market represents one of the most affordable time in history to purchase a home, due to low mortgage rates, discounted prices and government incentives.  Add in the recent rise in foreclosures, and it is not uncommon to see buyers get up to 20% off the purchase price when they make an offer on a new house.
Some fortunate buyers, though, are getting up to 50% off the purchase price due to a new incentive called the Good Neighbor Next Door Program, which offers qualified borrowers the opportunity to buy HUD homes in approved neighborhoods for half off.  That’s right, half off.  To make these HUD homes even more affordable, buyers can apply for FHA-insured mortgages that require down payments of only $100.

WHO GETS THE DISCOUNT?
So who exactly qualifies for this excellent (and almost too good to be true) opportunity? HUD tells us:
“Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program.  HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home.”
Why would they do this?  The purpose, is “to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community.”

ARE THERE ANY STIPULATIONS?
So what’s the catch?  The main requirement for the discount is a guarantee that you will occupy the home as your primary residence for at least 3 years.  After the 3 years have passed you are free to do whatever you want.  In fact, after you buy the home and live there for the full time period, you can legally sell it. All of the profit and equity from the sale are yours to keep! This means that not only is the program a great way to break into homeownership for people who otherwise couldn’t afford it, but it is also a great way to build up equity and make some money in the process.  Oh, and you can even refinance the mortgage down the road if it happens to be to get a lower rate or even to make repairs.

The other main requirement for the program has to do with the house itself.  Qualifying properties must be located in HUD approved neighborhoods, meaning you can’t just go out and find any house you would like.  Don’t worry though, qualifying neighborhoods are located all across Texas, including many areas in DFW.

Want to find out if you qualify for this type of loan?  Are you interested in seeing which properties qualify as approved neighborhoods?  Feel free to CONTACT US and we will get back to you as soon as possible. The department of Housing and Urban Development updates the areas which are eligible quite frequently, so if you can’t find something you like immediately just give it some time.  You can also visit HUD’s website for more information.

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