The Role of Real Estate Agents and HUD Homes

Choosing whether or not you wish to work with a real estate agent when buying a home is an optional choice with most forms of real estate.  HUD homes on the other hand, require a realtor to assist you throughout the process.  In addition to this requirement, the realtor must be HUD-approved.  Buyers of HUD homes can begin the process themselves, and even view HUD homes they find on their own. However, the HUD-approved real estate agent is the only one who can place a bid on a HUD Home.

When choosing a real estate agent, you will need to ensure they are registered with what’s known as a HUD NAID.  NAID stands for “Name and Address Identifier” and helps HUD recognize agents.   Agents must resubmit their information packets annually and pay regular fees in order to maintain their status as HUD-approved realtors. (more…)

Your Guide to Creating a Budget

If you plan on becoming a homeowner, setting and sticking to a budget is a must.  Budgeting will help you save for a down payment on your new home, as well as help set aside money for emergencies or vacation.  Whether you’re looking to buy a rent-to-own home with a deposit, a HUD home with low down-payment requirements, or a traditional mortgage; wise money management is a good skill to have early on.

 

How to start creating a budget:

When starting a budget, the first thing to do is take an inventory of your current financial situation.  This will help you see areas where you may be wasting money, as well as get a good idea what your income to debt ratio is:

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Questions to Ask when Renting-to-Own a Home

Looking for a rent-to-own home can be an exciting experience.  While it’s exciting to start picturing yourself in your new home, it’s important you don’t get too caught up in the moment.  This is a big decision that can impact you and your family for years to come, so make decisions wisely.  The best way to make an informed decision is to ensure you have all the facts and information available to you. You can do this by asking the right questions throughout each stage of the process. (more…)

Things to Know Before Renting to Own a Home

Are you considering renting-to-own a home?  Renting-to-own provides an opportunity for individuals, who may not have otherwise qualified for a mortgage through traditional means, to become homeowners.  This means those with less than perfect credit, or down payment troubles, can qualify. As with any large financial investment, however, there are risks. Let’s discuss things you need to know before renting-to-own a home.

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Avoiding Common Real Estate Scams

Buying, renting, or renting-to-own a home is a huge decision and commitment.  There is so much to think about during the process, that being conned or scammed should be the last thing on your mind.  It’s the unfortunate reality though, that scammers are everywhere – even in the real estate market.  In this FBI report, statistics show that last year there were 11,300 cases of real estate or rental fraud.  The losses of these scams added up to almost $150 million dollars.   Learn how to protect yourself from real estate scams below, and what to look out for. (more…)

How to Choose the Best Mortgage for Rent-To-Own homes?

If you’ve started looking into the home buying process, you have probably discovered the myriad of mortgage options available. Even worse, mortgage types tend to change yearly, leaving many would-be homeowners more lost and confused about what type of mortgage may be best for them. If you’re struggling with what type of mortgage to get, this 2020 guide is here for you.

Before we get too far into various types of mortgages, let’s discuss the most two most common you will hear about: (more…)

Essential Tips For Buying a HUD Home

So you’ve decided to buy a home. You’ve researched your options, read up on what a HUD home is, and are now curious – is a HUD home right for you?  The decision to buy a HUD home can be very situational. Let’s look at some common pros and cons to help you decide.

Benefits of Buying a HUD Home:

There are many pros to buying a HUD home. If you qualify to buy a HUD home, you would be eligible for the following benefits:

  • Assistance from HUD with closing costs (this can be up to 5% of the purchase amount)
  • Faster closing if you’re using an FHA loan to buy the home, as these are already pre-approved.
  • Low deposits, making entry into the home market an affordable option to many.
  • HUD homes prefer buyers who will be living in the home over real estate investors more interested in flipping or renting the property.

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What is a HUD Home and What are its Benefits?

“Dreaming of Affordable Housing? See What’s Out There…”

In 1965, The U.S. Department of Housing and Urban Development (HUD) was established to increase the number of homeowners coupled with community development by deterring discrimination in regards to access to affordable housing. The program allows eligible families, who meet certain income requirements the opportunity to purchase housing.

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Are HUD Homes a good deal?

Home ownership improves communities, and HUD is dedicated to making that a reality for people and neighborhoods across the nation. HUD homes are previous foreclosures of residential property that are now owned by the US Department of Housing and Urban Development (HUD). Anyone with appropriate capital or financing can purchase a HUD home unless you work for or are a vendor of HUD.

Benefits of a HUD Home

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HUD Homes vs Foreclosures

Casual real estate observers often conflate foreclosures and HUD-listed properties. Foreclosures are properties that banks outright own, either through foreclosing on a property owner or purchased by the lender. These properties are listed on the market for sale by the lender, often through an auction process but not always. The two categories of homes for sale share little in common other than the fact that the regulating authority, aka the government, is in charge of some aspects of the sale of these properties.

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