Questions Concerning FHA/HUD Homes

Q: Which properties are eligible for the $100 down payment incentive?

A: Any property listed as available for FHA financing (203B, 203B with repair escrow

and 203K) on the effective date of 11/23/07 will be eligible. However, the purchaser

must be an owner occupant to qualify and the full price offer must be accepted after

the effective date. Properties with an accepted offer or currently under contract will

not qualify.

Q: What is a “full price offer?”

A: The current list price is a full price offer, even if the property has been pricereduced.

HUD will still pay up to 3% of the list price for closing costs and up to 5%

for the selling agent commission. This is a great opportunity for buyer’s to purchase

a HUD home at a reduced price and with an affordable down payment.

Q: Are properties listed under special programs available for the $100 down payment incentive?

A: Properties sold under the Good Neighbor Next Door Program currently have this

provision if FHA financing is used

Q: How do I indicate that I want to take advantage of the $100 downpayment incentive?

A: Enter $100 as the down payment amount on line 4 of the sales contract. The

mortgage amount and length of the mortgage may be left blank or filled in with

“TBD”

Q: I have won the bid, but I bid more than the appraised calue to ensure that I would be awarded the property. Can I still buy the home for $100 down?

A: The down payment amount should remain the same, but the buyer would still be

required to bring in the difference between the accepted offer and the appraised

value in cash at closing.

Q: I was awarded the bid on an eligible property, but I submitted the offer and contract using conventional financing. Will the incentives apply if I switch to FHA?

A: As long as the property and bid meet the eligibility requirements and an

amendment to the sales contract changing financing is approved, buyers may take

advantage of the $100 down payment incentive. Please do not hesitate to contact

the MCB Sales Team for assistance and guidance regarding this process.

Q: How long will this incentive program last?
A: HUD has not published the length of time these incentives will be offered.

Questions Concerning Renovation Loans

Q: Can I Add projects as I go?

A: No additional projects will be covered without prior authorization by your renovation specialist.  Furthermore, any incomplete or additional projects could affect your final inspection and appraised value.

Q: Can I do my own work?

A: No. The investor considers doing the work yourself as an added risk.  If the time frame,  completion costs, or an injury occur, then where does the money come from to pay a contractor that now has to step in and complete the project?

Q: Does the same contractor do everything?

A: Usually not, often contractors are specialty Contractors and your project may require 2 or more.  Some projects may even be completed by a general handy man.

Q: How do I get permits for the work that requires them?

A: In most cases, your contractor will take care of pullin permits. Permits can vary from county to county and for specifc questions you should contact your local Planning and Zoning Office.

Q: Will a time and estimated materials bid from my contractor be enough?

A: No. You will need a detailed list of work, a list of permits needed and a firm bid for work to be completed.