Wednesday, October 26, 2011

$100 Down HUD Homes are BACK!

$100 down HUD homes are back!

From now until October 20, 2012, The $100 HUD home sales incentive is back in Colorado. Here's how it works:

  • The offer price must be the full listing price.
  • The down payment requirement is only $100.
  • The financing must be an FHA mortgage.
  • The maximum loan amount cannot be more than 100% of the appraised value.
FHA loans have a 1% up-front mortgage insurance premium (UFMIP), which is typically included in the loan amount. However, since the maximum loan amount cannot be more than 100% of the appraised value, it seems like there will be a problem.

Well, there's not a problem. Here's why:

  • If the appraised value exceeds the offer price by more than 1%, then the UFMIP can be included in the loan amount and the total loan amount will still be less than 100% of the appraised value.
  • If the appraised value is less than 1% greater than the offer price, the UFMIP cannot be included in the loan amount. However, the lender is allowed to pay for the UFMIP. When we do $100 down deals like this, we pay for the UFMIP.
And that's another great reason to call us for your next mortgage!

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

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