We have buyers who often ask us how to buy a house in the Phoenix housing market with no or very little money down. One of the most popular programs right now is the no money down USDA loan, but that is not going to work for most of the Phoenix market as it has to be a rural property.
One possibility to get into a Phoenix home with no money or very little money down is a HUD home. A HUD home is a a 1-4 unit residential home that was insured for an FHA loan program that has been foreclosed on.
Right now in Phoenix there are roughly 20-30 HUD homes a week coming onto the market, not only can you get into these homes for as little as $100 down, often times you will walk away from closing with money to repair the HUD home with.
What are some advantages in HUD homes?
- $100 down plus closing costs not paid by seller
- HUD will allow up to 3% seller concessions to help pay for closing costs
- There is no appraisal fee needed
- Electronic bidding
- Closing in 45 days or less
HUD homes are sold as-is, much like other foreclosure properties. A big difference is a HUD home has an estimated cost of repair for each property and the seller gives a rebate at closing for that mount.
For more information about buying a HUD home you can check out http://mcbreo.com/ who handles the HUD properties in Arizona.
