A lot of it is naive residential brokers who beleive anything they hear and think they can make a life changing paycheck on every deal so they promote bogus programs and or "lenders".

Lot divisions are controlled by county laws and involve fees and surveys and approvals by boards.

There are loans out there for first time buyers, down payment assistance programs, etc.

I have $120,000 in a fund with a local bank and want to use this money to become more involved in real estate.

Not with 1000s on the market in your area that are distressed.Not sure I'd want to get involved at all since if you buy it at a foreclosure sale, he may still not want to leave the house, or he might push his best buddy for some extra time to stay rent free.

Other cities do this already, though the program/requirements vary a little from city to city.

First let me congratulate you for making a wise decision by not blowing money you can invest on "guru programs".

I plan on trying to increase equity in any property I get involved in-I have a construction background and a couple of contractrs I would like to get involved with me if this could become a reality.

A home being purchased through the HUD program must be used as a primary residence.

Usually it involves a 1% fee and you will have to be underwritten.