Considering Buying a HUD Home?
HUD or the US Department of Housing and Urban Development was started in 1937 with the US Housing Act. In 1965 the Housing and Urban Development act was created and helps people by administering a variety of programs that develop and support affordable housing. It plays a large role in homeownership by making loans available for lower and moderate income families through a variety of programs and FHA mortgage insurance programs. HUD itself owns many communities throughout the US and offers them for sale at lower prices and more affordable economical terms. In addition, HUD protects consumers through housing education, Fair Housing Laws and rehabilitation initiatives. Their primary mission is to develop suitable living environments for all Americans by developing and improving individual communities and enforcing Fair Housing Laws. [HUDHomeStore.com]
What Does "HUD Approved" Mean?
The term "HUD Approved" is used for a home with 1 to 4 units in a residential property acquired by HUD as a result of a foreclosure action on an FHA insured mortgage. HUD then becomes the owner and offers it for sale to recover the loss on the foreclosure claim at a lower price.
Who Can Buy a HUD Home?
Just about anyone can buy a HUD home if you qualify for a mortgage or have the cash. However, the trick is is that buyers must work through a registered HUD real estate broker in order to bid for the home. HUD homes range in price but most are affordable for low and moderate income Americans however you don't need to have this type of income in order to qualify.
What Condition are HUD Homes In?
HUD homes are typically sold "as is" and without a home warranty. HUD themselves will not pay to correct any problems but not all of them need repair. HUD will typically list of the home at a price that is fair to the buyer if they'll need to invest money in order to make improvements. All this to say, it still vitally important for homebuyers to have a home inspection regardless of what HUD will actually do but it is at their risk and expense, like most home purchases. However, HUD may offer special incentives or an allowance in order to improve or upgrade the property and may also offer a bonus for closing the sale early. Buyers also might have the opportunity to request that HUD pay for all or a portion of the financing and closing costs.
How Do I Get Started?
To get started you'll need to contact a HUD approved real estate broker. Vision Realty and Donald Payne are approved as HUD qualified buyers agents. Vision Realty offers all necessary forms and procedures required in order to complete a contract, bid and closing. You'll also need to work with a HUD approved lender if you're planning on financing the property. ~ www.sageacq.com
How Much Does it Cost to Buy a HUD Home?
A good rule of thumb is anywhere from 5% to 7% of the sales price or mortgage price of the home. This includes the down payment, closing costs if necessary, home inspections and appraisal.
Read more: Pros and Cons to Buying a HUD Home
Why Use Vision Realty?
Don Payne, Sr. received his Real Estate Agent’s license in 1979. Don obtained his Real Estate Broker’s license in August 1987 and established an independent brokerage, Vision Realty, Inc. February 1990 in Columbus, Ohio. The key to Don’s success for more than three decades is his immense desire to become acquainted with his clients and to understand how homeownership can best help them meet their personal visions. Don is officially recognized as a Certified Distressed Property Expert (2009) and a Certified Residential Specialist (2011). We understand that credentials, rules, laws and procedures change dramatically and we strive to increase our knowledge in order to represent our client to the best of our ability.
Don and his team have an innate desire to assist and rebuild neighborhoods damaged or affected by financial strife and uncertainty of the past decade. Don has been selling distressed properties since 2000. He has worked with such REO Asset Management companies as Lender Processing Services, American Home Mortgage, Stonegate Bank, LOGS REO, Green River Capital and HomeEq Servicing.
The Don Payne Group, Vision Realty, Inc. has sold over 125 HUD properties within the past 5 years of service. The current client base consists of Ofori and Associates and Vendor Resource Management. Don’s team consists of a licensed Administrative Assistant and two (2) licensed Buyer’s Agents.
As a team, we strive to stay up to date and on target in today’s competitive market. We complete monthly and quarterly training for real estate agents and the general public. We have partnered with local HUD Agencies, Columbus Homeport, Columbus Urban League and Homes on the Hill and conduct the Realtor’s portion of home buying to the general public through outreach events and seminars. We urge the general public to attend these workshops to receive buyer’s closing cost credit as required. Our local agents are trained at the Columbus Board of Realtors and are equipped locally for service in outlying areas such as Lewis Center, Gahanna, Worthington and Grove City, just to name a few . We fervidly connect with the public in a 1 hour workshop on various topics:
- How to use hudhomestore.com
- How to submit a bid online
- How to check the status of their client’s bid
- Buyer’s Select Title Program
- Registering a NAID
Our mission is to educate the general public and real estate agents on HUD homes and connect the right agent with the right client.
Our office is centrally located in Columbus but we have agents and brokers that surround the Columbus area and offer expert care for HUD homes in Franklin, Licking, Delaware, Pickaway, Fayette,
Madison and Union County. This covers dozens of zip codes, cities and communities including but maybe not limited to: 43001, 43004, 43011, 43015, 43016, 43017, 43021, 43023, 43026, 43031, 43035, 43040, 43044, 43054, 43062, 43064, 43065, 43068, 43074, 43080, 43081, 43082, 43085, 43102, 43103, 43105, 43110, 43112, 43116, 43119, 43123, 43125, 43130, 43137, 43140, 43143, 43146, 43147, 43162, 43201, 43202, 43203, 43204, 43205, 43206, 43207, 43209, 43210, 43211, 43212, 43213, 43214, 43215, 43217, 43219, 43220, 43221, 43222, 43223, 43224, 43227, 43228, 43229, 43230, 43231, 43232, 43235, 43240, - See Rough Map Below for Area Covered but Call if You Are Unsure of a Particular Area.
Vision Realty, Inc. is proud to have partnered with the Neighborhood Assistance Corporation of America (NACA.com) where 100 participants attended the workshop as first-time home buyers. NACA is a non-profit HUD Certified homeownership and advocacy organization. Donald is a United States Army veteran and has a deep desire to better his community, his city and his country.