I am sorry to be the messenger of bad news. But this is very important for all owner occupants who planned to buy a HUD home in 2010.
HUD announced that effective February 12, 2010 – that’s a Friday – HUD homes sold with FHA financing will no longer be eligible for the $100 down payment incentive.
In addition, the sales allowance of $2,500 for owner occupant purchasers will also be discontinued.
The deadline when both programs end is Friday, Feb. 12, 2010. Here are the dates you have to beat, in order to get your contract accepted by Feb. 12, 2010:
- HUD homes listed last Friday (1/29/10): submit your offer on Sunday 2/7/10
- HUD homes relisted this coming Friday (2/6/10): Submit your offer on Tuesday 2/9/10
- Homes available to all bidders are on a daily deadline – the last day you can submit an offer will be Wednesday, February 10, 2010.
Please keep in mind that there are no guarantees that HUD will approve the offers within 2 days, but this has been our experience in the past.
What’s the impact of this drastic reduction of incentives? If you are an owner occupant buyer, it certainly means that you will have to bring more cash to closing and somehow come up with the minimum downpayment required by FHA. Currently, this is still 3.5%, but it may go up to 5% in the near future.
My recommendation: hurry up, if you don’t have a downpayment!
For investors and owner occupant buyers with cash this will open up the doors for even better deals. I truly expect the HUD homes inventory to rise after this deadline, fewer homes will be purchased by owner occupants and HUD will be eager to accept lower offers from investors.
Important! Call me immediately, if you plan to buy a HUD home with these incentives. I will try to do my best to accommodate as many of my subscribers as possible. Once we loose these incentives, your out of pocket costs of buying HUD homes will increase dramatically!
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650
