Financing a HUD home is similar to financing any other home purchase – you can use conventional loans, FHA loans, VA loans, or even cash. The best loan for you will depend on your situation and the condition of the property:
FHA Loans: Many HUD homes are eligible for FHA financing. FHA is popular because of its low down payment requirement (just 3.5% down) and flexible credit criteria. If the HUD home needs minor repairs, an FHA 203(b) loan with a repair escrow might allow you to finance the repairs. For homes needing major renovations, an FHA 203(k) renovation loan can be used – and yes, the special $100 down incentive can be paired with an FHA 203(k) on eligible HUD properties.
Our loan officers are highly experienced with FHA loans
and can help you use these options. FHA loans are a common choice for HUD purchases because HUD homes, by definition, already have an FHA appraisal history (from the foreclosure process) and often qualify readily.
For more info, visit us at www.newwidelending.com https://www.newwidelending.com