Buying A HUD Home Realizing the American Dream of Home-Ownership and a Presentation on how you would look for and BID on a HUD HOME Contact us at

This Presentation on buying a HUD Home is presented by

The Basics of what you need to purchase a home Using an FHA Mortgage you will need 3.5% down payment ($3500 on a $ home) Closing costs normally range between 4.5 and 6% of the price of the home depending on Price $6000 on a $ Home. HUD Will assist up to a maximum of 3% towards closing costs.

The Realtor you are working with will require you are pre-qualified before bidding Normally this will require a 620 minimum credit score and a Lenders Letter will need to be supplied

You must work with a Registered HUD Real Estate Broker You cannot bid on your own…. You must find a REALTOR who has a NAID Number and is a HUD Selling agent or broker Just be sure they are a HUD selling agent and can bid on HUD Homes

DFW Metro Housing Is a registered HUD Listing Agent as well as a HUD selling agent with a NAID Number

HUD Will only assist with 3% Max in closing cost assistance You can bid whatever you wish to but please remember that HUD will only allow a maximum of 3% in closing cost assistance. Example: On a $ home you will need the following: $3500 down payment $5000 to $6000 in buyers closing costs Total needed to purchase a $ home is about $9500 Less seller CC assistance

How to look for HUD homes on-line? Go to HudhomeStore.com

Please go to the

Enter State Ciity and Zip

Today there is only one home available in Little ELM..Click case number

After Double clicking property case number receive this screen

Here you can tell when the bidding starts

When does the bidding start? In this case the bidding is daily at midnight Eligible Bi dd er s: All Bidders Bid Su b mi ss io n De ad lin e: Daily at Midnight CT Bid Su b mi ss io n Ti m e Re m ai ni ng : 2 Hours 44 Minutes

The listing Property information and the insurability (FHA Only)

Insurability All homes purchased with an FHA loan must pass the appraisal and be 100% FHA Insured. In this instance the home is insurable with $4840 in escrow repairs after the Appraisal. This means you would add $4840 to the loan which will be held in escrow for the needed repairs to close the loan Max $5000 under 203B

Escrow Repairs needed will be determined after FHA Appraisal

HUD will only allow a maximum of $5000 in repairs This is with a normal FHA loan called a 203B plus repair loan If more than $5000 is needed than we would go with a FHA 203K loan which will allow up to $30000 in repairs and escrow

What repairs are needed and where can you find the list? Addendums

Which report to look at: Disclosure Addendum TOP

Disclosure addendum (TOP)

Which report to look at: Propert Condition Report PCR

Property Condition Report

When you find a home that interests you we go and take a look at it and your Realtor will do the rest from there..

When will you know? Normally I know by lunch- time on the day after the bidding ends if you have won the bid

How long until you can close? You are given 45 days to close on a regular FHA 203B and 60 days to close on a 203K and 30 days on a cash deal. All other loans are 45 days

Finally I hope this presentation has given you more of an idea of what is involved in buying a HUD home. Please feel free to call me 7 days a week at I will try to answer any questions you may have. You may also visit my web-site at: Thanks very much for your time, Colin Rosenthal

Please feel free to contact me 7 days a week