spongebobrulz

So my stepmom lives in a HUD house...housing urban development, or something like that..

they're reposessed homes...well the one she lives in is a 3 bedroom 2 bath, huge livingroom and back porch and she's paying 360 per month for the mortgage...and it's not in a bad area..

so i decided since i wanted to buy a house i'd look into it, anyone ever hear of them and look into them?

-Amanda

Jeremy95TA

If I'm not mistaken, HUD houseing is for people that can't afford to buy their own houses. You'll have to contact a government agency for more info.

km9v

Just make sure it is in a decent neighborhood.

spongebobrulz

oooo well since i can't afford my own house, lol i guess i would qualify...

john storie

when you get a GFE (good faith estimate) for the loan,

take it to another mortgage shop and have them see if it is legit.

MIC (mortgage investors corp) is a VA re-fi scam that hits you for ~6% of the cost of your house in illegitimate fees, it was a ripoff of $7k on my $100k house.

spongebobrulz

yeah...well she said she went through a financial advisor i think it is..but i think some of the banks out there will give out loans too, just gotta keep my credit up till than.

when she mentioned it i just thought it'd be a good thing to look into, just gotta get the right price and the right neighborhood

john storie

yeah, buying a house is a good way to start if you are young.

sounds like you are in a good position to take advantage of some gov't programs. best do it now, a'cause when you will fuss about them same programs when you are older

a house is one of the only things you will ever buy that will appreciate in value.

a home depot/lowes card is a good insurance against home repairs, as long as you don't max your credit limit by buying stupid stuff.
http://www.homedepot.com/prel80/HDUS...gkj.0&MID=9876
if you are living tight, a house can have problems that will need immediate attention, and a HD or lowes card can keep your hot water on, or keep the water IN the pipes.
a HD card is ~21% interest though.

my house in GA almost doubled in value in ~4 years, now just gotta find somebody to buy it.

http://root.z57.com/www.debbietrey.c...jjthlvzw.shtml

2002Z28SSConv

What I remember from about 10 years ago when I was shopping for my first house, HUD stands for the department for Housing and Urban Development. Basically they are government foreclosures. The FHA (?Federal Housing Authority?) guarantees loans kind of like a cosigner. That's what an FHA mortgage is. If the buyer defaults on the mortgage and it gets foreclosed on, the FHA pays off the bank that holds the mortgage (this doesn’t mean that the buyer isn’t responsible for repayment of the loan). They then auction off the property to new owners again to try and get their money back. Most of the houses are gonna need some fixing up. Think about it, if the last owners didn't have money for the mortgage they didn't have money for repairs and upkeep either. Just be aware of that. Sometimes you'll see an escrow amount mentioned in the HUD listing. That is there for predetermined repairs that need to be made in order for the mortgage to go through. Banks don't like lending money when their collateral is damaged to begin with.

But all-in-all it's a great way to buy your first house. Just be prepared to find things that need to be fixed.

spongebobrulz

yeah, this is what she told me..of course i could get lucky and get one like hers, with little fxin up. And yeah you're right, basically if i find one i take over the mortgage..the part that's left over. the bank or whatever pays it off and i just pay whoever paid it off.

got_hp?

you dont have to pick out a HUD home to get a first home.

FHA offers a first-time homebuyers loan where you only have to put down 3% down payment, and they are very flexible on how much they will lend for your credit. its basically designed for younger or first timers that have not built up a lot of credit yet, but make enough money to pay the mortgage.

i used an FHA loan to build my first house, brand new 3bed 2bath 2car garage and im only 23. i wanted new so i dont have to bother fixing other peoples problems and everything has a warranty.

spongebobrulz

well i have good credit, but i don't really have the money to pay more than 450 or so for rent

MustangEater82

Not sure if it affects you but I know being a student disqualifies you for governement subsudized apartments, not sure if it would affect you with a house.

Its a good idea if you can get it to work...

I want to buy a house to rent out but yeah not in that situation yet, but hopefully working towards it.

louvit

here ya go...My wifes a realtor

http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm

spongebobrulz

thanx that'll help a lot

S. Holley

Just so you know...

FHA and VA loan programs are designed by the govt. You will pay a slightly higher rate and Mortgage insurance on top of you regular P+I+T+I, If you can finance through a traditional means... you can put at least 20% down and pay just P+I and you can pay your taxes and insurance yourself if you like or include it wilth your P+I.

Correct your FHA loans are designed for first time home buyers But people have used these types of loans on second or third home.... The house must be your primary like on a VA loan....(veterns)VA loan typically are just 3% also... Be aware that some extra fees are legitt... for example: 1. Closing and settlement fees will vary from lender to leander and how you negoiate with the seller 2. If you buy points to lower your rate 3. you will have to pay up front for your taxes if you Escrow (that is the T+I of the whole P+I+T+I) Your veterns and FHA loans will only cover you for a certain mortgage balance. I believe it is just over 200K loan... Not sure the number may have changed...(it was 144K for FHA) either way if you can get gifted a 20% down from family member or a govt program.... SUCH AS S.H.I.P. you can get better rates and terms...FHA is also good for you guys out there wiyh the mid to high 500 credit scores.... same with VA.

Back to the govt homes....HUD. These homes are typically bought buy investors who buy them just as they hit the market... these properties also get auctioned off at local court houses... for example first thursday in the month at the sanford court house.... or you can find these homes from time to time on bank websites... But it is difficult to buy these homes in seminole county the market is crazy and people buy them fix them up and sell them for profit in less than 6months.... to turn 10-15K profit... people who buy these homes use cash or credit lines to secure their deals, if they keep it then they may get a loan...

Of course if you qualify through a govt program.... they will help find you a home, secure financing, and usually give you cash to put down on it.

My Best advise for a college student is talking your parents into buying you a home near UCF, while you and your parents hold the mortgage you have a 3 or 4 bed room house the you can rent the rooms for what the mortgage costs you.... after you graduate sell the house and you will walk away with the equity, built your credit, and lived free for 4-5 years THAT IS SOLID advise if you and your parents can do it...

Think about it... you a buy a 150K old house... with 3 rooms. put down 30K roll you fees and closing cost into the loan usually about 3% say 124 K loan....about a 700 payment... P+I rent it for 400.00 each to your friends to live in a HOUSE!! not a crapy apartment with rules...Five years later they have paid you about 48K (don't get excitted most of that went to interest but less say your balance on your mortgage is now...115K left your house will go up in value some 20-25% in 5 years....YOu sell it for about 185K....YOu walk away with 70K.... give mom and dad back there 30K and you keep 40K for a done payment?
Any questions....??? you made 40K in 5 years....Now pay off your credit cards