How much down payment must a buyer have to purchase a home today? Obviously, that will vary depending on several factors. However, there is a program available to purchase a home requiring only $100 for a down payment! HUD has several programs that Real Estate Agents and Home Buyers need to be familiar with. My guests on Success in Real Estate this week, Larry Jordan, owner of Palmetto Real Estate Group and two of his agents, Tharry and Theresa Sally, explain how some of these programs can work for you. If you have any questions, give them a call at 803-939-8562.
The $100 down payment program is a FHA product which requires:
* The property must be owner occupied
* The client must offer full list price
* You must utilize FHA insured financing
* Borrower must not have purchased a HUD REO property within the last 24 months
There is also a Good Neighbor Next Door Program which allows the buyer to purchase the home for only 50% of the homes value. For example, you buy a HUD home for $100,000, you will have two mortgages, each for $50,000. You only make payments for one mortgage for $50,000 and once you have lived in the home for three years, the other $50,000 mortgage will go away, NO PAYMENTS! You just bought a $100,000 home for only $50,000. Requirements of this program include:
· Eligible Participants: Teachers, Law Enforcement, Firefighters, and EMT
· Available Financing: FHA, VA, or Conventional
· Qualifies for the $100 down payment program if you utilize FHA insured financing
· HUD requires a silent second mortgage for the discount amount (50%) – no interest payments required
· You must live in the home as your sole residence for a full 36 months
· Must put one percent of the list price as earnest money, but no less than $500 and no more than $2,000. Once you close, you can get the earnest money back, less the $100 down payment, or apply earnest money towards the loan amount
If you purchase a HUD home in need of repairs, HUD will provide the funds to make repairs. The repairs listed on the appraisal cannot exceed $5,000 and the buyer can establish a cash escrow or they are permitted to include in their mortgage an amount equal to 100% of the estimated cost of the repairs.
If you are interested in getting your South Carolina Real Estate License, we would love to have attend our Real Estate School For Success. We will train you to not only pass the state exam, but also teach you how to build a lucrative career in the Real Estate Industry. We also offer many other licensing courses such as Property Manager, Appraiser, Home Inspector, etc. The Real Estate School For Success is an approved MyCAA provider, which allows for many military spouses to take all classes at no charge. Give us a call for details. You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.
Discount/Promo Code is: HUD