HUD Homes and Loans

What is HUD?

HUD is a housing institution in the US cabinet that stands for Housing and Urban Development. It is responsible for ensuring that housing and city development goes smoothly and has been around since 1965. However, its focus has shifted primarily to housing since the 1970s. Urban planning is now under the hands of individual cities.

One of the main responsibilities for a HUD loan is to serve as a lending facilitator. It is mainly used to provide loans to low to mid level income households so that they can purchase property or housing. HUD is not in the form of a lending institution per se. However it does approve loans and supports borrowers on a material basis.

Other than that, HUD also provides potential home owners with counseling services. It consists of a large network that addresses a vast range of key educational issues that focus on home ownership. Moreover, it also provides advice for foreclosures, defaults, rent and even credit issues. However, if you decide to utilize a HUD loan, you must do so through a licensed real estate agent.

What are HUD Homes?

HUD homes are generally 1 to 4 unit residential properties that are acquired by the HUD because of foreclosures on an FHA insured mortgage. These HUD homes thereby become the property of the HUD after foreclosures.

The FHA (Federal Housing Administration) is a part of the HUD that provides homeowners with federal mortgage insurance. A lender can file a claim for the price of the mortgage if the foreclosed home was bought with an FHA loan.

How much do HUD homes cost?

HUD homes are priced at specific and fair market prices according to their location after they are appraised by the HUD. The prices of the homes are altered in accordance to any potential repairs that the new homeowners must see to in order to improve the home in question.

HUD foreclosures are sold via a bidding process. Your agent can accept sealed bids during the offer period. All offers will be open the moment this period ends. The HUD will accept the highest bids for those that have the potential to get more net.

If you live in Arizona or plan to have a permanent place of residence there you can apply for a HUD home. Potential HUD home loan candidates can go to www.azhud.com and www.fhaarizona.net for more information or click here for a free booklet.

Thanks for reading my article:  HUD Homes and Loans

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Purchasing Owner Occupied HUD Homes

What are HUD Homes?

First time buyers usually decide to fund their home loans through the Federal Housing Association (FHA) via FHA insured loans.  The FHA can also implement foreclosures if a property owner fails to keep up on his/her mortgage payments. The agency then takes legal possession of the home and resells it through a HUD registered real estate agent.

HUD puts those up for sale what were “owner occupied”. You must sign a document if you wish to purchase a HUD Home. 

The document testifies that you have agreed to remain in the home for at least 12 months before you decide to sell it. If you have no intention of living in the intended property for that long and sign the document anyway, you might be charged with fraud.

In other words, you might end up spending some jail time or be fined a hefty sum and convicted. Needless to say, lying about the whole thing isn’t what you can afford at this point. So make sure that you are ready to stay for at least 12 months before you sign up for a HUD FHA loan. If you don’t plan on living in the home for that long don’t buy it! A felony charge won’t look good when it comes time to sell the house.

Sellable homes that are a result of HUD foreclosures are not candidates for a quick flip. However, they can be a godsend for investors who need a place to stay. Other than that they can also serve as long term investments.

One of the most obvious benefits of HUD homes in Arizona is that they allow you to qualify for FHA financing. FHA agencies provide special interests rates in loans that you can use to purchase or rehab dilapidated properties.

However, assuming that you might get a great deal on property just because it is funded by the government is a mistake. Therefore it is best that you do your research when it comes to applying for HUD homes or FHA home loans. Besides that, make sure that you inspect your target property, research property value rates in the area and have the home looked at by a seasoned professional before you even think of handing over your hard earned funds.

For further information on financing or buying a HUD home (free HUD Home Buying Guide) please feel free to call The Mark Taylor Team 602-361-0707.  And as always thanks for reading my article: Purchasing Owner Occupied HUD Homes

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Arizona HUD Home Loans

Arizona HUD Loans

A number of would be homeowners may have heard something about Arizona HUD Home loans but are not quite sure exactly what they are, or how they might differ from other private mortgage loans. These are just a few of the basic facts about HUD loans, and why they might be the right home loan for you.

What exactly is an HUD Loan?

The FHA – The Federal Housing Administration – was created as a part of a piece of legislation called the National Housing Act of 1934.

The purpose of the creation of the FHA was to help provide more Americans with the chance to own their home by insuring loans that offered lower down-payment options and reasonable monthly mortgage rates.

Essentially the intent behind an FHA loan has changed very little over the years and it is the FHA that now insures the HUD loan products.

By insuring the loan against loss to the lender should a buyer default the FHA offers a guarantee to private lenders on a HUD home loan that make them far more willing to make mortgage loans that come with a lower down payment attached and to those a private mortgage banker might consider too high of a risk to grant a mortgage loan to.

Who Can Get an HUD Loan?

The Department of Housing and Urban Development (HUD) strives hard to promote homeownership for  families in all income brackets. As a part of its main mission though FHA insured, HUD loans are designed for families with poor credit or who have faced previous financial struggles.

There are several different types of FHA insured HUD loans available. The best person to discuss a specific FHA loan type based suited to a home buyers individual needs an FHA/HUD  mortgage specialist, who has the knowledge and experience with all of the loan offerings available.

What are The Advantages of an HUD Loan?

Perhaps the most obvious advantage of an FHA insured HUD loan is the fact that a home buyer needs only to find a down payment of approximately 3.5% of the purchase price of the home instead of the more usual 6% required when taking out a private mortgage. But there are other advantages as well. These include:

The option of more easily using financial gifts towards a down payment. This can be a big plus for young, first time buyers or families with relatives willing to help them.

  • There is no prepayment penalty, which can add up to big savings over time.
  • Often lenders will show greater leniency if a borrower runs into temporal financial problems.

What the Basic HUD Loan Qualification Requirements?

The ability to come up with the required down payment is one. A demonstrable steady income is another must, although credit rating may be considered more favorably if it has been poor in the past by a HUD loan lender.

The Mark Taylor Team can help you get an Arizona HUD Loan!

Mark Taylor’s 13 years in the Mortgage industry and his $3/4 of a billion funding give Mark the experience and YOU the confidence that every deal he does is a sound investment. Mark has earned numerous awards by helping structure the intricacies of his client’s real estate portfolios to best set up their investment and retirement needs. This has resulted in numerous awards, but more importantly, thrilled clients.

His primary role is the facilitation of clients’ needs regarding mortgages, while balancing their goals and objectives with sound financial and mortgage planning to ensure the loan they choose is the correct product for their circumstances – currently and into the future. He also trains and educated Realtors® in ethics, contract law, and short sales offering continuing education hours in those areas to ensure we raise the standard of care to our community. What more could you want from a Mortgage Planning Hero? Wings? He’s probably working on that right now.

Contact the Mark Taylor Team today to get started on your Arizona HUD Loan.

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