Buy a Reno Home with $100 Down & Recieve $5000 Cash Grant for Closing Cost
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$100 Down Payment Rules & Regulations
First, visit a Realtor that is licensed to sell HUD homes in your area. Below are the rules for buyers as specified by HUD:
- The home you purchase must be your primary residence and you must live there at least one year.
- You must offer HUD’s full asking price.
- You will have to obtain an FHA-insured loan that has a fixed rate for either 15 or 30 years.
- Your debt to income ratio must be 31%/43%.
- The maximum amount of the loan can’t exceed $362,790.
- You must have a credit score of 580 or higher and if you have had a recent bankruptcy, it must have been discharged at least 24 months prior to your HUD home purchase.
- You must have two years of employment history.
- FHA mortgage insurance must be rolled into your loan.
- Your Realtor must pre-qualify you by submitting HUD’s 100dollarHUDHome Offer to Buy.
This offer is good on owner-occupied purchases only meaning you must use the home as your primary residence and can be used on single-family homes, condos, and town homes. This offer is not available for investors who wish to buy and rent out a HUD home.
Where Do I Find HUD Homes?
Most Realtors are licensed to sell HUD homes and have access to their house listings. HUD releases all new home listings every Friday morning and from that point a ten-day Exclusive Listing Period is in place in which only owner-occupied buyers may bid. HUD homes are priced at market value price so to ensure you have a chance of winning the bid, make sure you offer the market price and have your Realtor guide you.
In addition to the $100 down payment, HUD also offers the 203k Major and Light Rehab loans to help buyers purchase a HUD home that may need some repairs. The best part of this is that you can roll the cost of the repairs into your FHA-insured loan and for the light rehab loan will cover repairs up to $35,000. The major rehab loan will cover repairs over $35,000 and it can include almost anything including bathroom, kitchen, and utility room appliances.
Read more: http://www.brighthub.com/money/home-buying/articles/28618.aspx#ixzz1S7MIJO5b
Every NSP2 home for sale includes a $5000 Cash grant to be used for closing costs and a $15,000 interest free forgivable loan. Applicants may also qualify for a WISH grant, which could provided up to an additional $15,000 forgivable loan. Applicants can also purchase a Mortgage Credit Certificate through the Home at Last MCC Program offered by Neveda Rural Housing Authority
NSP2 targeted income groups
NSP2 activities are targeted towards two groups of people. Potential homeowners will be people making between 50% and 120% of the Area Median Income (AMI), and potential renters will be people making less than 50% of AMI. The AMI chart for Washoe County is as follows(FY 2011 Income Limits):
Area Median Income (AMI)
| Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 50% AMI | 24,700 | 28,200 | 31,750 | 35,250 | 38,100 | 40,900 | 43,750 | 46,550 |
| 120% AMI | 59,200 | 67,700 | 76,150 | 84,600 | 91,350 | 98,150 | 104,900 | 111,650 |
http://www.renoha.org/index.php?id=purchase
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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates . You can also follow me at http://www.twitter.com/chancegates . If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or to request a modification. If the modification fails, contact your local real estate professional to help short sale your home. To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney
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