I am ideally looking for a multifamily home, but where I am moving to there are only 2 on realtor.com I might end up with a SFH. My question is in the description it says
"The Denver Home Ownership Center has extended the FHA $100 Down Sales Incentive indefinitely for all HUD REO offers accepted. Owner Occupant purchasers utilizing FHA-insured financing (including the FHA 203(k) Rehabilitation Program)"
I am looking to do a FHA and live in the property for a year if I get a SFH. What exactly does the above statement mean? A quick google search makes it look like this property was failed to be sold at a foreclosure auction and I am eligible to buy it with an FHA?
It sounds like The Denver Home Ownership organization extended an incentive given to owner occupants. Many times in my area HUD homes that have been foreclosed (HUD REO) are offered to owner occupants for a certain number of days before investors can offer. In your case it sounds like this time period was extended and if your offer is accepted by the bank then you would only put $100 down. I don't think this property has when to auction since it is still being offered exclusively to owner occupants. Additionally it sounds like you'd be eligible for a 203k rehab loan which is basically getting a single FHA loan for both the purchase and rehab. Only caveat is that you cannot self perform the rehab. It must be done by a professional contractor. Good deal nonetheless if you qualify and plan on staying for a year or more. You'll just have to make sure how long you are required to occupy the property. This is just my interpretation of the information you provided so I could be incorrect.
The only accurate place to find available HUD homes is Hudhomestore.com
The $100 down payment incentive is offered is certain areas in certain times and enables an owner occupant to purchase a HUD home with an FHA loan. The down payment is reduced from roughly 3% to $100 plus closing costs
IMPORTANT: Only select an agent, lender and title company with experience selling and closing Hud homes as the process requires knowledge of their system and deadlines
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing