Mike Taylor

Hello Buyers, I have added a new page to my website to give you local weekly interest rate updates. Only one lender there but more very soon. Keep checking back.

I am looking into free online workshops for you too. I am evaluating them now - it they look good I will make them available soon. Keep checking CobbGARealty.com.

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My lenders are telling me that mortgage rates may be about to inch up and that if you are close to closing it may be a good time to lock your rates.

Call your loan officer and see what they have to say. This is just an FYI and a heads up!

If you need a great loan officer let me know and give you the name of several.

Buying a HUD REO Home for $100 Down!

Yes it can be done - you can buy a HUD REO Home for only $100 Down:

•· $100 Down payments on HUD REO Homes financed with FHA insured financing

•· You have to be an owner occupant - no investors!

•· Must be a full price or higher offer

•· Sales allowances may be available to pay for closing costs, to make repairs, or to pay down the mortgage amount

•· Closing costs and pre-paid items may not be included in the mortgage (FHA pays up to 3% in closing costs and up to 5% to selling agent's commission when you buy a HUD REO and you don't have to roll those costs into the your mortgage - NICE!)

•· Also applies to FHA 203K loans (more on 203K loans in a later blog post) with a full price or higher offer

•· If the offer price is greater than the appraised value (the as-is value), you will have to pay the difference in addition to the $100 down payment (if the asking price is $100,000 and you offered $102,000 you will have to come up with $2,100 - the $2,000 difference plus the $100 down payment)

•· You will have to pay the Up Front Mortgage Insurance Premium (currently $1% of the mortgage amount. The MIP is similar to PMI on conventional mortgages with a loan to value (aka LTV) ratio of 80%. Unlike PMI the mortgage insurance premium is paid regardless of LTV

•· You will have to qualify for the mortgage - your credit score needs to be around 640 (also known as a FICO score - you can check your credit scores online - google it)

It is important to get pre qualified for you loan by contacting a loan officer. The pre qualification will let you know how much you may be able to borrow and will have to be included with any offer you make on a HUD Home.

Contact Mike today and I will put you together with one of my preferred lenders that can get you pre qualified - it's easy!

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Wondering what market conditions are like in Cobb county Georgia? Let's look at the numbers ending 10/31/2010:

The stats are saying that pre-foreclosures are up slightly in October, actual foreclosures are down (remember that banks are holding back on foreclosures), market sales are down significantly as are bank sales, and that new listings are holding steady.

The lower counts for foreclosures and bank sales are consistent with the banks reviewing their foreclosure practices. Also, remember that year end is coming up and that if banks foreclose now the asset value of that property goes to zero until it sells (that does not look too good on the profit sheets).

Also, the closer we get to Christmas the more people's thoughts turn towards the holidays and family and less toward buying homes and moving.

(I got the numbers from a paid service: RealValuator.com)

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This is the first of many blogs posts I will share with you on HUD homes for sale (aka HUD REOs) and FHA loans. Stay tuned for more info.....

What is a HUD Home for Sale or HUD REO?

• It is a residential property that had its mortgage insured by the FHA (Federal Housing Administration).
• The property went into foreclosure and now the FHA owns the home
• Don't let the word REO confuse you. REO means Real Estate Owned - in other words a foreclosure. From HUD's point of view a foreclosure is real estate they own and dont want to own.

What are the characteristics of a HUD REO?

• despite popular opinion - they are not all low end homes (far from it)
• they are 1 to 4 unit single family residences
• some are in move in condition, some require varying degrees of repair (often just carpet and paint)
• they are sold as is - HUD doesn't do repairs unless there is a safety, security, or marketability problem (don't worry if you want to do repairs there are FHA loans to help you finance them - more on that in future posts)
• you are encouraged to get your own independent inspection
• you will not acquire bills or liens on the property
• anyone can buy a HUD home
• investors cannot bid on the home until it has been for sale for 31 days
• investors can buy as many HUD REOs as they want
• owner occupants have the first 31 days the property is for sale to buy a HUD home without competing with investors
• owner occupants must live there for 1 year
• owner occupants cannot be involved in another HUD sale for 2 years after purchase
• owner occupants can buy a HUD Home for only $100 down using FHA financing
• Up to 3% closing costs and up to 5% selling agent commission is paid by HUD
• all offers are entered online for HUD's consideration but we must complete a HUD purchase package prior to making the online bid. Only an agent registered with HUD can make the online bid. I am a registered agent.
• the package must include a pre qualification letter from a loan officer (don't worry about that either - I know several loan officers that do excellent work)
• HUD homes can be purchased using FHA financing, conventional financing, or cash.

In my view, HUD Homes for sale (HUD REOs) when combined with FHA financing offer some of the best oppurtunities available in today's market.

My next blog will tell you more about buying a HUD home for only $100 down - stay tuned!

Contact Mike Taylor with any questions you may have! Mike@CobbGARealty.com or 678-772-7411.

Your search is over!