HUD Owned Properties in the Twin Falls Area: Some Great Buys Available
Looking for homes that are lender owned and really priced well? HUD may have the answer for you if you are in the market for a nice home to live in or you just want a property as a good investment.
HUD also has financing available for these homes and for owner occupied properties, very little cash is required to buy one of these. Prices right now in the Twin Falls / Magic Valley area range from starter homes for $40,000 up to higher end homes for $169,000.
All of these homes are available for viewing and offers are made electronically. These homes range from condos up to four units and the condition of the properties varies. HUD is good about spelling out whatever issues there are with the properties that they are aware of from their inspections. So, normally there are no surprises.
When a new HUD listing comes out it is deemed an “Exclusive Listing” and is available only for buyers who intend to occupy the property, government agencies or nonprofits for a 10 day period of time. On the 11th day HUD looks at all the offers that have come in and takes the one with the highest net for HUD. If no acceptable offer comes in, the property becomes an “Extended Listing” and is available to all buyers, including investors. Once that happens HUD takes offers on a daily basis and will make decisions on a daily basis.
HUD bases the asking price of their homes on an independent appraisal of the property in the property’s current condition. They tend to reduce the prices of their listings after they have been on the market for a short period of time. Offers can be made for less than the appraised values, and offers below the appraised values are often accepted.
HUD does not provide financing on the properties they offer for sale. Buyers who intend to live on the property, and who qualify, can use an FHA 30 year fixed loan, which today is at 4.750%. The borrower needs to put down 3.5%, but it can come from a gift. The current requirement is for a credit score of only 640. If your credit score is lower than that, there are some ways to get it to that level. Give us a call and we’ll tell you about it.
Investor loans are also available with 20% down at very reasonable rates. To view HUD homes available anywhere in the United States, go to www.HUDhomestore.com and enter the required information to view them. All HUD properties are sold through real estate brokers who are registered with HUD to sell their listings. The rates are a little higher but still very good at 5.375% as of this week. The lenders like to see six months in reserves for investors, but that can be in a CD or other investment.
This is a great way to get into an entry level investment property or to get a real bargain on a home for your family. For more information, give us a call or write. Also, go on line and look at the available properties at: www.HUDhomestore.com.
Lee
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