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***$1,000 Sales Allowance paid to Owner-Occupant buyers who go under contract on a HUD property within its first 30 days on market***

Only available to owner-occupant buyers; investor buyers not eligible

Buyer financing type is irrelevant

- Eligible properties are new listings which have a list date of June 4, 2008 or later

Please note this incentive is available for new listings only; properties which were/are on market and re-list after June 4 are not eligible for the incentive

- Contract must be received and executed within 30 days of property’s initial list date

PEMCO has a dedicated staff member who will be processing all
eligible contracts on a priority basis, however agents are encouraged to allow for processing time when submitting contracts which are
eligible for the incentive

- $1,000 Sales Allowance will show as a credit on the HUD 1

- Do not alter the purchase price on the property to reflect the allowance

- Agent do not need to mark anything on sales contract to receive the buyer allowance; allowance is automatically handled by PEMCO Admin for all eligible contracts

You can purchase a HUD home with only $100 down! Not only that, but you can get up to 110% LTV with FHA financing*. There is a $5,000 sales allowance paid to borrower for closing costs, prepaids, and/or repairs at closing when using FHA financing. The HUD 3% aloowable closing cost funds still apply. You are onlly eligible for this program if the home you are purchasing is a HUD owned home in all eligible states & if you are an owner occupant.

*The LTV may exceed 100%, up to 110%, as the result of financing closing costs and prepaid expenses, and/or to fund a repair escrow included in the sales contract. The cost of repairs may not exceed $5,000.

The majority of people have a general idea of how much money they feel comfortable spending. It's just as important to find out how much a lender calculates how much you can afford.

Evaluate your financial situation as the lenders would. Generally, your total monthly housing costs includes your mortgage principal and interest payments, property taxes and hazard insurance, and should not exceed 28% of your gross income. Or housing costs plus any outstanding monthly long-term debt should not exceed 36% of your gross monthly income.

Lenders factor in sales price and the down payment, but place more importance on how much you can handle monthly. I suggest you contact a local bank of your choice. One that you may have an established relationship with to assist you in the prequalification process.

Not all Realtors do the exact same things, or follow the exact same routine. What I find to be pretty important in the very beginning is getting pre qualified. Many people do not like the idea of having their credit scrutinized just to be able to LOOK at a home. Which I clearly understand. Then again this is not some pair of Gucci shoes at the mall that we're window shopping for, it's a home. It would not be fair to walk into a glorioius 6 BD/6BTH home, with chandeliers made of 24kt gold, & elegant & modern crown moldings all for the price of $1,000,000, only to find out in the end that you are qualified for $400,000.( Of course, this is just an example :) ) So if you're thinking about buying a home, make sure that you are serious. Do your research. Find out what area you would like to reside in. I would even suggest doing your own little guestimations about your budget, and what monthly payments you know you can afford so you can get an idea of what you're getting into. There are plenty of tools online that will aid you in your home search. In my opinion, getting pre qualified before you even contact a Realtor is pretty appealing. It lets us know that you are serious, passionate and ready about purchasing your new home.

This is a question that wonders through every first time homebuyers mind. Unfortunately the answer to that question is no. I have heard in some states, ( more like 1 state MA,) has allowed this in the form of a "program", but don't quote me on it. The IRS has put many rules and stipulations as to how you can "use" the tax credit. So yes, you will need to come with some cash up front for your down payment. And of course if it's less than $8,000, you'll get it all back..... maybe more!!