As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing
Can You Buy A HUD Home In South Jersey
Yes. As long as you qualify for a home mortgage loan insured by the local Federal Housing Administration (FHA) and have the cash or sufficient financing, you can buy a HUD home in South Jersey.
In order to do so though, certain conditions must be met, which are laid out by the U.S. Department of Housing and Urban Development (HUD). The HUD home you are looking to purchase must also meet certain conditions in order to be sold through this government-backed program. Most communities offer FHA and HUD centers to make the process of buying a HUD home and qualifying for a government-insured mortgage easier. Visit New Jersey Homeownership Buying Programs to find out more about HUD homeownership in New Jersey.
Information you need to know if you want to buy a HUD home:
When a previous homeowner defaults on their FHA-issued mortgage, HUD obtains ownership of the home.
Anywhere from one to four HUD homes are usually available.
Only residential properties, not business properties, can be purchased through HUD programs.
The purchase owner of a HUD home must plan to live on the property.
Investors are allowed to purchase a HUD home, but a HUD homeowner who plans to occupy the HUD home is given priority over an investor.
Real estate agents must be registered with HUD to sell HUD properties.
Broker fees associated with the HUD home purchase are all covered by the program.
Be prepared. Some HUD properties may need a renovation overhaul. The federal government does not give any guarantee for HUD home conditions. HUD encourages home inspections to find out what repairs may be needed. If the property does need an overhaul, check with your lender who handles FHA-backed loans for a rehabilitation loan.
If you want to buy a HUD home because of the benefits an FHA-insured mortgage provides, consider the following:
Qualifying for these types of loans can be tough to do, even though they are issued under a federal government program.
As of 2010, those applying for a government-insured mortgage cannot apply for more than 96.5 percent of the total property costs.
Standard credit qualification, job stability and income must be proved.
The state of New Jersey also sets mortgage limits as all U.S. states do. For example, as of 2010, a person looking to buy a single-family HUD home in the San Francisco Bay Area or in Los Angeles cannot borrow more than $729,750. A single-family HUD home FHA-insured mortgage limit in the Atlanta area, however, is $346,250.
Also, according to HUD, potential homeowners can qualify to buy a HUD home with HUD discounts and/or special FHA-insured mortgage programs if:
You have been displaced by a natural disaster such as Hurricane Katrina or Hurricane Rita.
You are interested in restoring houses.
You are a police officer, firefighter, teacher, emergency services personnel or some employee of a nonprofit organization and choose to purchase a HUD property in an area declared to be in need of restoration.
Just about any potential buyer can place a bid to buy a HUD home.
So, if you want to buy a HUD home in South Jersey, the Department of Housing and Urban Development and Sam Lepore of Long & Foster in Moorestown, NJ, can help. As your real estate agent, Sam has access to available HUD listings through the Multiple Listing Service. He'll know which homes are HUD-owned. Call Sam today at (856) 297-6827.
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....