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For a few years now the real estate market has been heavily leaning on the buyers’ side with a lot more inventory than there have been buyers and unfortunately because of the economy we are going to see more of the same in 2012. But if you’re a buyer, this could not be a better time for you, especially with interest rates still as low as they have ever been!
HUD-Owned Properties Are Not Always Money Pits
The single biggest hang up that most homebuyers have about looking at HUD-owned homes is that they perceive the properties to be money pits waiting to happen. The truth is that there are a lot of properties in perfect or at least near-perfect condition. At best these properties require some rehabilitation but nothing that will cost too much or involve lengthy time-consuming projects. In fact, aside from a few cosmetic issues like paint, flooring or fixtures, HUD-homes most often have solid structure and very desirable amenities, floor plans and features.
Homeowners Can Manage Fix-Ups With the FHA 203k Home Reno Loan
There will be times that you will come across serious fixer-upper homes in this category however you will likely get the property at a steep discount and with the help of a 203k loan you can build in renovation costs into your mortgage. The best advantage of this is that you can customize the home to your needs, doing anything from installing a high-end kitchen and bathrooms to finishing your basement or even landscaping. One of the best features of this loan is that it also facilitates owners to live elsewhere for up to 6 months while rehabilitation takes place, keeping up mortgage payments in the interim. Add to that the fact that you will get the same low interest rate on your 203k loan and buying a HUD home makes even more sense!
When you consider the financial benefits of buying in today’s market and buying through HUD with the historically low interest rates available out there, it makes good sense to browse HUD homes. Most buyers receive deep discounts on their property – discounts that add up to thousands of dollars and many times even tens of thousands of dollars. When you factor in the low interest rates and as a result buyers being able to afford much more house for the same monthly payment amount, dealing with a few cosmetic concerns is well worth it.
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To begin your search for HUD homes, browse the official HUD search engine of all properties listed nationally, by state. Keep in mind that in order to bid on any of these homes you must go through a registered HUD broker as all real estate agents are not qualified to handle these transactions. Getting a great deal, sometimes as much as 40% below market value, is worth a little extra effort – so why not start your search today?
