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Tenna Stokes-Salas
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SEARCH FOR HUD HOMES IN WICHITA, KS

Century Two
HomeTelosFIRST
REPOSSESS HUD HOME LINK CLICK BELOW
Understanding HUD Properties and Financing
  1. Where do FHA properties come from?
    FHA, or the Federal Housing Administration, is part of the Federal Government’s Department of Housing and Urban Development (HUD). FHA helps homebuyers qualify for mortgage financing by offering lenders insurance against homebuyer default.
    When a homebuyer defaults on an FHA insured mortgage, the lender may foreclose and take ownership of the home. The lender then transfers ownership of the home to FHA in exchange for FHA paying the lender the balance that was due on the mortgage. FHA sells tens of thousands of foreclosed properties each year using the expertise of industry experts such as HomeTelos.
  2. If I want to buy a HUD property, can I use an FHA loan to buy the home?
    Yes! Your lender still needs to qualify you for an FHA insured loan. Remember, FHA does not make loans directly to homebuyers. You must go through your lender. However, FHA financing is not required. Your lender can guide you through available financing programs, including FHA.
  3. Does getting an FHA-insured mortgage help in buying a HUD Home?
    HUD may have more attractive downpayment terms on an FHA mortgage if a borrower is buying a HUD home. Check with your real estate broker regarding special terms or homebuyer incentives.
  4. Can HUD help if the property I am buying needs some repairs?
    Through the FHA, HUD offers Property Rehabilitation Mortgage Insurance, also known as a “203k loan”. In this program a lender sets aside part of your mortgage in a repair escrow, which you can draw on to make needed repairs. Talk to your lender about FHA 203k loans, and if one is right for you.

 

 

 

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