Difference between revisions of "Buy a Home With No Money Down"
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#*Approximate value of your personal property. | #*Approximate value of your personal property. | ||
#*A recent credit report. | #*A recent credit report. | ||
| − | #*An official appraisal of the property that you want to purchase.<ref>http://www.fha.com/fha_requirements_checklist</ref> | + | #*An official appraisal of the property that you want to purchase.<ref name="rf1">http://www.fha.com/fha_requirements_checklist</ref> |
| − | #Contact an FHA-approved lender. The FHA does not loan money directly to potential home owners. Rather, it has a list of approved lenders that make loans through FHA-insurance programs.<ref>http://www.govloans.gov/loans/loan-details/504</ref> After gathering all of the required loan information, your next step is to contact an FHA-approved lender and discuss potential mortgage terms. You can find a list of FHA-approved lenders here: http://www.hud.gov/ll/code/llslcrit.cfm. | + | #Contact an FHA-approved lender. The FHA does not loan money directly to potential home owners. Rather, it has a list of approved lenders that make loans through FHA-insurance programs.<ref name="rf2">http://www.govloans.gov/loans/loan-details/504</ref> After gathering all of the required loan information, your next step is to contact an FHA-approved lender and discuss potential mortgage terms. You can find a list of FHA-approved lenders here: http://www.hud.gov/ll/code/llslcrit.cfm. |
#*Discuss the ways that you can purchase a home for little to no money down. The lender should be able to tell you the amount that you can finance through a mortgage. | #*Discuss the ways that you can purchase a home for little to no money down. The lender should be able to tell you the amount that you can finance through a mortgage. | ||
| − | #*Technically, the FHA does not offer a no-money down loan. However, you can get a loan with a down-payment as low as 3.5% of the purchase price of the home and lenders are restricted in the amount of fees that they can charge you.<ref>http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/203b--df</ref> | + | #*Technically, the FHA does not offer a no-money down loan. However, you can get a loan with a down-payment as low as 3.5% of the purchase price of the home and lenders are restricted in the amount of fees that they can charge you.<ref name="rf3">http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/203b--df</ref> |
#*If you qualify for an FHA-insured mortgage, you can determine whether you also qualify for down payment support from your state or other lenders (discussed below). If you qualify, you can purchase a house without having to put any money down. | #*If you qualify for an FHA-insured mortgage, you can determine whether you also qualify for down payment support from your state or other lenders (discussed below). If you qualify, you can purchase a house without having to put any money down. | ||
| − | #Seek a pre-approved mortgage. While you are not required to seek pre-approval, the FHA recommends that you take this step in order to find out early in the process whether you will qualify for a mortgage and how much the lender is willing to let you borrow. You should discuss a pre-approved mortgage with the FHA-approved lender and ask them about what steps you must take.<ref>http://www.fhahandbook.com/blog/fha-approval-process-5-steps/</ref> | + | #Seek a pre-approved mortgage. While you are not required to seek pre-approval, the FHA recommends that you take this step in order to find out early in the process whether you will qualify for a mortgage and how much the lender is willing to let you borrow. You should discuss a pre-approved mortgage with the FHA-approved lender and ask them about what steps you must take.<ref name="rf4">http://www.fhahandbook.com/blog/fha-approval-process-5-steps/</ref> |
#Complete a Uniform Residential Loan Application. This application starts the mortgage approval process. You may be asked to complete this form if you seek pre-approval but you will be required to complete the form during the mortgage process and usually after you have identified a house that you want to purchase. | #Complete a Uniform Residential Loan Application. This application starts the mortgage approval process. You may be asked to complete this form if you seek pre-approval but you will be required to complete the form during the mortgage process and usually after you have identified a house that you want to purchase. | ||
| − | #*You will need to provide much of the information that you already gathered such as employer information, income sources and amounts, debts, housing expenses, and the appraisal of the new property, if you identified a home to purchase.<ref | + | #*You will need to provide much of the information that you already gathered such as employer information, income sources and amounts, debts, housing expenses, and the appraisal of the new property, if you identified a home to purchase.<ref name="rf4" /> |
#*You can view a sample loan application here: https://www.fanniemae.com/content/practice_case/do-du-case-6-1003.pdf | #*You can view a sample loan application here: https://www.fanniemae.com/content/practice_case/do-du-case-6-1003.pdf | ||
#Seek an underwriting and document review. Once you have completed your paperwork, chosen a home to purchase and had the home appraised, you submit all of your documents for review. The lender will examine your paperwork and determine whether your information supports making a loan that they believe will be repaid. | #Seek an underwriting and document review. Once you have completed your paperwork, chosen a home to purchase and had the home appraised, you submit all of your documents for review. The lender will examine your paperwork and determine whether your information supports making a loan that they believe will be repaid. | ||
#*During the process, you may be asked to give a more detailed explanation of certain aspects of your income, expenses or debt. This is a fairly routine request and often only requires a short letter of explanation that responds to the lender’s questions. | #*During the process, you may be asked to give a more detailed explanation of certain aspects of your income, expenses or debt. This is a fairly routine request and often only requires a short letter of explanation that responds to the lender’s questions. | ||
#*If the lender finds serious concerns about your ability to pay for the loan, you may not qualify for mortgage through this FHA program. | #*If the lender finds serious concerns about your ability to pay for the loan, you may not qualify for mortgage through this FHA program. | ||
| − | #*If your loan makes it through the underwriting process, there is a good chance your loan will be approved.<ref | + | #*If your loan makes it through the underwriting process, there is a good chance your loan will be approved.<ref name="rf4" /> |
| − | #Receive loan approval. If the underwriter believes that you meet all of the lender’s guidelines and the FHA’s guidelines, you will be approved for financing of your home, also known as a mortgage. If your offer or [[Determine What to Bid on a House|bid]] on a home has been accepted, you can move towards [[Prepare for a Closing|closing]] on your new home.<ref | + | #Receive loan approval. If the underwriter believes that you meet all of the lender’s guidelines and the FHA’s guidelines, you will be approved for financing of your home, also known as a mortgage. If your offer or [[Determine What to Bid on a House|bid]] on a home has been accepted, you can move towards [[Prepare for a Closing|closing]] on your new home.<ref name="rf4" /> |
#Determine whether you qualify for down payment assistance in your state. If you are unable to afford the 3.5% down payment on your home, you can seek down payment assistance through state programs, sometimes referred to as secondary financing assistance. You can locate agencies or nonprofits that offer secondary financing assistance in the following places: | #Determine whether you qualify for down payment assistance in your state. If you are unable to afford the 3.5% down payment on your home, you can seek down payment assistance through state programs, sometimes referred to as secondary financing assistance. You can locate agencies or nonprofits that offer secondary financing assistance in the following places: | ||
#*You can find links to state-by-state home buying resources here: http://portal.hud.gov/hudportal/HUD?src=/topics/rental_assistance/local. | #*You can find links to state-by-state home buying resources here: http://portal.hud.gov/hudportal/HUD?src=/topics/rental_assistance/local. | ||
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#* Discharged members of the Selected Reserve who have never been activated for Federal active service must provide a copy of their latest annual retirement points statement and evidence of honorable service. | #* Discharged members of the Selected Reserve who have never been activated for Federal active service must provide a copy of their latest annual retirement points statement and evidence of honorable service. | ||
#*Surviving Spouses in Receipt of Dependency & Indemnity Compensation benefits must submit VA Form 26-1817, located at http://www.vba.va.gov/pubs/forms/VBA-26-1817-ARE.pdf, and the veteran’s DD214, if available. | #*Surviving Spouses in Receipt of Dependency & Indemnity Compensation benefits must submit VA Form 26-1817, located at http://www.vba.va.gov/pubs/forms/VBA-26-1817-ARE.pdf, and the veteran’s DD214, if available. | ||
| − | #*Surviving Spouses who are not receiving Dependency & Indemnity Compensation benefits must submit the following to the appropriate Compensation and Pension office: VA form 21-534 located at http://www.vba.va.gov/pubs/forms/VBA-21-534-ARE.pdf; DD214 (if available); Marriage License; and a Death Certificate or DD Form 1300 – Report of Casualty. You can find the address for your local Compensation and Pension office here: http://www.benefits.va.gov/HOMELOANS/documents/docs/pmcaddress.pdf.<ref>http://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp</ref> | + | #*Surviving Spouses who are not receiving Dependency & Indemnity Compensation benefits must submit the following to the appropriate Compensation and Pension office: VA form 21-534 located at http://www.vba.va.gov/pubs/forms/VBA-21-534-ARE.pdf; DD214 (if available); Marriage License; and a Death Certificate or DD Form 1300 – Report of Casualty. You can find the address for your local Compensation and Pension office here: http://www.benefits.va.gov/HOMELOANS/documents/docs/pmcaddress.pdf.<ref name="rf5">http://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp</ref> |
#Request a Certificate of Eligibility (COE). You can request your Certificate of Eligibility in the following ways: | #Request a Certificate of Eligibility (COE). You can request your Certificate of Eligibility in the following ways: | ||
#*You can apply online at: https://www.ebenefits.va.gov/ebenefits/homepage | #*You can apply online at: https://www.ebenefits.va.gov/ebenefits/homepage | ||
#*You can request that your lender apply for your COE. | #*You can request that your lender apply for your COE. | ||
#*You can request your COE by mail by completing the request form located at http://www.vba.va.gov/pubs/forms/vba-26-1880-are.pdf, and mailing the form to: Atlanta Regional Loan Center, Attn: COE (262), P.O. Box 100034, Decatur, GA 30031. | #*You can request your COE by mail by completing the request form located at http://www.vba.va.gov/pubs/forms/vba-26-1880-are.pdf, and mailing the form to: Atlanta Regional Loan Center, Attn: COE (262), P.O. Box 100034, Decatur, GA 30031. | ||
| − | #*Spouses can take form 26-1817 located at http://www.vba.va.gov/pubs/forms/VBA-26-1817-ARE.pdf, to their lender for processing or they can mail it to: Atlanta Regional Loan Center, Attn: COE (262), P.O. Box 100034, Decatur, GA 30031.<ref | + | #*Spouses can take form 26-1817 located at http://www.vba.va.gov/pubs/forms/VBA-26-1817-ARE.pdf, to their lender for processing or they can mail it to: Atlanta Regional Loan Center, Attn: COE (262), P.O. Box 100034, Decatur, GA 30031.<ref name="rf5" /> |
#Find a mortgage lender. Since the VA does not lend money itself, you need to locate a [[Find a Mortgage Lender|lender]] that works with VA loans. Once the lender confirms that they work with VA loans, consider the following in evaluating the lender: | #Find a mortgage lender. Since the VA does not lend money itself, you need to locate a [[Find a Mortgage Lender|lender]] that works with VA loans. Once the lender confirms that they work with VA loans, consider the following in evaluating the lender: | ||
#*Get offers from several lenders and see who is offering you the best interest rates. | #*Get offers from several lenders and see who is offering you the best interest rates. | ||
#*Show the lenders their competitors’ offers to see whether they will match or beat the best offer you received. | #*Show the lenders their competitors’ offers to see whether they will match or beat the best offer you received. | ||
#*Check whether the lender is offering you a mortgage rate that is competitive to mortgage rates that people of similar [[Check Your Credit Score|credit ratings]] are receiving. You can see a breakdown of mortgage rates by credit score here: http://www.myfico.com/LoanCenter/Mortgage/Step4/FairLoan.aspx. | #*Check whether the lender is offering you a mortgage rate that is competitive to mortgage rates that people of similar [[Check Your Credit Score|credit ratings]] are receiving. You can see a breakdown of mortgage rates by credit score here: http://www.myfico.com/LoanCenter/Mortgage/Step4/FairLoan.aspx. | ||
| − | #*Ask all of the lenders to explain all of the closing costs, fees and any other expenses associated with the loan so you can understand and compare the true costs of each loan.<ref>http://www.myfico.com/loancenter/mortgage/step4/</ref> | + | #*Ask all of the lenders to explain all of the closing costs, fees and any other expenses associated with the loan so you can understand and compare the true costs of each loan.<ref name="rf6">http://www.myfico.com/loancenter/mortgage/step4/</ref> |
| − | #Seek preapproval for your loan. By choosing to get prequalified for your VA loan, you can determine whether you will qualify for a loan and the amount you will qualify. Once preapproved, you can begin looking at properties and begin the home purchasing process. Generally, to become preapproved for a VA loan, lenders will examine your income, debt, expenses and other factors to determine whether they believe you will be able to repay a loan and the amount of the loan you can afford to repay.<ref>http://www.benefits.va.gov/homeloans/purchaseco_buy_process.asp</ref> | + | #Seek preapproval for your loan. By choosing to get prequalified for your VA loan, you can determine whether you will qualify for a loan and the amount you will qualify. Once preapproved, you can begin looking at properties and begin the home purchasing process. Generally, to become preapproved for a VA loan, lenders will examine your income, debt, expenses and other factors to determine whether they believe you will be able to repay a loan and the amount of the loan you can afford to repay.<ref name="rf7">http://www.benefits.va.gov/homeloans/purchaseco_buy_process.asp</ref> |
#Calculate your Debt-to-Income Ratio | #Calculate your Debt-to-Income Ratio | ||
#*Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners’ dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. | #*Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners’ dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. | ||
#*The maximum ratio to qualify is 41%. | #*The maximum ratio to qualify is 41%. | ||
| − | #*In the event the number exceeds the 41%, the VA has a residual income guideline which can allow approval, yet are not considered a compensating factor.<ref>http://www.valoans.com/va_facts_debt</ref> | + | #*In the event the number exceeds the 41%, the VA has a residual income guideline which can allow approval, yet are not considered a compensating factor.<ref name="rf8">http://www.valoans.com/va_facts_debt</ref> |
#Apply for a home loan. Your lender will provide you with all of the paperwork that you need to apply for the home loan as well as a checklist of any documents or information that you must provide with the application. If you went through the preapproval process, you may have already submitted some of the required documentation but there will be a much closer examination of your finances before a loan is finally approved. | #Apply for a home loan. Your lender will provide you with all of the paperwork that you need to apply for the home loan as well as a checklist of any documents or information that you must provide with the application. If you went through the preapproval process, you may have already submitted some of the required documentation but there will be a much closer examination of your finances before a loan is finally approved. | ||
#*You will need your DD214: Proof of Military Service form, and a prospective property. | #*You will need your DD214: Proof of Military Service form, and a prospective property. | ||
#*Remember: all veterans who meet the criteria are eligible for the loan, but that does not mean that you will necessarily qualify for the loan that you seek. | #*Remember: all veterans who meet the criteria are eligible for the loan, but that does not mean that you will necessarily qualify for the loan that you seek. | ||
#*The VA guarantees a loan of 25% of an amount up to $104,250, generally the list price of the home, plus the funding fee, which limits the maximum loan to $417,000. | #*The VA guarantees a loan of 25% of an amount up to $104,250, generally the list price of the home, plus the funding fee, which limits the maximum loan to $417,000. | ||
| − | #*Because there is no down payment involved, this will be a Guaranteed Loan, which means that the lender is protected against failure to pay.<ref>http://www.valoans.com/va_facts_whatis</ref> | + | #*Because there is no down payment involved, this will be a Guaranteed Loan, which means that the lender is protected against failure to pay.<ref name="rf9">http://www.valoans.com/va_facts_whatis</ref> |
=== Applying for an 80-20 Mortgage === | === Applying for an 80-20 Mortgage === | ||
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#*Lenders may offer you a fixed rate on the 80% loan. However, lenders may only offer you a variable rate on the 20% loan, which means if interest rates go up, you may have to pay more than you originally planned. | #*Lenders may offer you a fixed rate on the 80% loan. However, lenders may only offer you a variable rate on the 20% loan, which means if interest rates go up, you may have to pay more than you originally planned. | ||
#*Lenders may restrict the amount of the second loan because there is an increased risk in offering two loans to one home purchaser. | #*Lenders may restrict the amount of the second loan because there is an increased risk in offering two loans to one home purchaser. | ||
| − | #*If you do qualify, you will have two payments, but talk to your financial advisor about consolidating them into a monthly lump sum. <ref>http://homeguides.sfgate.com/80-20-mortgage-loan-7591.html</ref> | + | #*If you do qualify, you will have two payments, but talk to your financial advisor about consolidating them into a monthly lump sum. <ref name="rf10">http://homeguides.sfgate.com/80-20-mortgage-loan-7591.html</ref> |
#Use caution. You should be fully aware that taking out two loans to finance the purchase of a house can be a very risky venture. | #Use caution. You should be fully aware that taking out two loans to finance the purchase of a house can be a very risky venture. | ||
#*Before the mortgage crisis of 2008, these loans were easy to come by and were possible to profit from. It was, however, one of the main causes of the mortgage crisis in 2008, making it an extremely difficult option to pursue now. | #*Before the mortgage crisis of 2008, these loans were easy to come by and were possible to profit from. It was, however, one of the main causes of the mortgage crisis in 2008, making it an extremely difficult option to pursue now. | ||
#*The problem with these types of loans is that, if the home loses value, you can end up owing more than the value of the home, meaning that you will lose money if you want to sell your house. | #*The problem with these types of loans is that, if the home loses value, you can end up owing more than the value of the home, meaning that you will lose money if you want to sell your house. | ||
| − | #*Likewise, an 80-20 loan will involve a much higher interest rate and higher monthly payments, which can make it difficult to make ends meet if you have trouble coming up with the monthly payments.<ref>http://homeguides.sfgate.com/requirements-money-down-mortgage-2194.html; http://www.marketwatch.com/story/no-money-down-home-loans-are-back-2013-02-01</ref> | + | #*Likewise, an 80-20 loan will involve a much higher interest rate and higher monthly payments, which can make it difficult to make ends meet if you have trouble coming up with the monthly payments.<ref name="rf11">http://homeguides.sfgate.com/requirements-money-down-mortgage-2194.html; http://www.marketwatch.com/story/no-money-down-home-loans-are-back-2013-02-01</ref> |
#Locate a lender or lenders willing to make an 80-20 loan. You need to locate a [[Find a Mortgage Lender|lender(s)]] willing to make an 80-20 loan. When discussing the potential loans, ask the lender to calculate: | #Locate a lender or lenders willing to make an 80-20 loan. You need to locate a [[Find a Mortgage Lender|lender(s)]] willing to make an 80-20 loan. When discussing the potential loans, ask the lender to calculate: | ||
#*Whether two loans with a blended interest rate saves you money as compared to a single loan that requires insurance. | #*Whether two loans with a blended interest rate saves you money as compared to a single loan that requires insurance. | ||
| − | #*Whether there is an early repayment penalty for the smaller loan. You may be able to save money over the life of the loan if you repay the smaller loan back more quickly since it will most likely have a higher interest rate.<ref>http://www.thetruthaboutmortgage.com/mortgage-combos-and-blended-rate/</ref> | + | #*Whether there is an early repayment penalty for the smaller loan. You may be able to save money over the life of the loan if you repay the smaller loan back more quickly since it will most likely have a higher interest rate.<ref name="rf12">http://www.thetruthaboutmortgage.com/mortgage-combos-and-blended-rate/</ref> |
#*Discuss your plans with a financial advisor. Make sure that you will be able to repay both loans and that it makes financial sense to get two loans versus one loan with insurance. | #*Discuss your plans with a financial advisor. Make sure that you will be able to repay both loans and that it makes financial sense to get two loans versus one loan with insurance. | ||
===Leasing With an Option to Purchase=== | ===Leasing With an Option to Purchase=== | ||
| − | #Decide if leasing with an option to buy is right for you. This is another way to potentially purchase a house with little or no money down. Also known as an option or "rent to own," this is an opportunity for you to rent a home you eventually plan to purchase, with a percentage of the rent paid going toward a downpayment on the property.<ref>http://www.realtor.com/advice/rent/rent-to-own-agreement-can-benefit-buyer-and-seller/</ref> | + | #Decide if leasing with an option to buy is right for you. This is another way to potentially purchase a house with little or no money down. Also known as an option or "rent to own," this is an opportunity for you to rent a home you eventually plan to purchase, with a percentage of the rent paid going toward a downpayment on the property.<ref name="rf13">http://www.realtor.com/advice/rent/rent-to-own-agreement-can-benefit-buyer-and-seller/</ref> |
| − | #*The rent on an optioned house is going to be above market (because you are also paying toward the downpayment), so it may not be worth it to enter this arrangement unless you have your heart set on that particular house.<ref | + | #*The rent on an optioned house is going to be above market (because you are also paying toward the downpayment), so it may not be worth it to enter this arrangement unless you have your heart set on that particular house.<ref name="rf13" /> |
| − | #Find an owner who is willing to option her house. People who have struggled to sell their home and are motivated may be more open to this arrangement.<ref | + | #Find an owner who is willing to option her house. People who have struggled to sell their home and are motivated may be more open to this arrangement.<ref name="rf13" /> Keep an eye out for a house that has been on the market for a long time. |
| − | #Know the risks. While this can be a great arrangement for some, it is not for everyone. Be aware that there are risks involved with renting to buy, namely that, should you choose not to purchase the home, you will not get back any of the option money back, losing whatever you paid toward the downpayment. It does mean that, should you change your mind, you are under no obligation to buy the house at the end of the lease.<ref>http://www.nolo.com/legal-encyclopedia/the-basics-rent-own-agreements.html</ref> | + | #Know the risks. While this can be a great arrangement for some, it is not for everyone. Be aware that there are risks involved with renting to buy, namely that, should you choose not to purchase the home, you will not get back any of the option money back, losing whatever you paid toward the downpayment. It does mean that, should you change your mind, you are under no obligation to buy the house at the end of the lease.<ref name="rf14">http://www.nolo.com/legal-encyclopedia/the-basics-rent-own-agreements.html</ref> |
| − | #*Make sure you have the home inspected before signing the lease or, at the very least, before buying the house. An appraisal will ensure you are paying a fair price for the home and you'll also find out if the house needs any major repairs. If there is major work to be done, it might be best not to enter into such an agreement, since the repairs may cost you quite a bit.<ref | + | #*Make sure you have the home inspected before signing the lease or, at the very least, before buying the house. An appraisal will ensure you are paying a fair price for the home and you'll also find out if the house needs any major repairs. If there is major work to be done, it might be best not to enter into such an agreement, since the repairs may cost you quite a bit.<ref name="rf14" /> |
| − | #*Make sure you have agreed who will be responsible if anything happens to the house while you are leasing.<ref | + | #*Make sure you have agreed who will be responsible if anything happens to the house while you are leasing.<ref name="rf13" /> |
| − | #Negotiate a contract. You will need a standard lease agreement, plus an option to purchase.<ref | + | #Negotiate a contract. You will need a standard lease agreement, plus an option to purchase.<ref name="rf14" /> Because the title to the house remains with the original owner until the house is actually purchased, you will need a lease agreement as you would with any tenant/landlord situation. In addition, the option to purchase will grant the tenant the option to purchase the house after a predetermined amount of time.<ref name="rf14" /> This includes the option fee, which is either paid upfront or as the higher-than-market rent.<ref name="rf14" /> Both parties should have a lawyer review the contracts and make sure the following is established:<ref name="rf13" /> |
#*Length of the lease period | #*Length of the lease period | ||
#*Rent amount | #*Rent amount | ||
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#*What happens if the home value rises or falls between the time you sign the agreement and the end of the lease | #*What happens if the home value rises or falls between the time you sign the agreement and the end of the lease | ||
=== Buying a Foreclosure Home === | === Buying a Foreclosure Home === | ||
| − | #Understand the FHA foreclosure process. When a person stops paying their FHA-guaranteed mortgage, the FHA may start the foreclosure process, which means that since the buyer can no longer make payments, the FHA will sell the home to pay off the mortgage of the defaulting buyer.<ref>http://www.fhaforeclosure.com</ref> Individuals can sometimes purchase FHA foreclosures, for little to no-money down.<ref | + | #Understand the FHA foreclosure process. When a person stops paying their FHA-guaranteed mortgage, the FHA may start the foreclosure process, which means that since the buyer can no longer make payments, the FHA will sell the home to pay off the mortgage of the defaulting buyer.<ref name="rf15">http://www.fhaforeclosure.com</ref> Individuals can sometimes purchase FHA foreclosures, for little to no-money down.<ref name="rf15" /> |
#Research foreclosure homes available in your state. The FHA as part of HUD provides a website where homeowners can search for HUD properties for sale. You can search for these properties here: http://hudhomestore.com/HudHome/Index.aspx. | #Research foreclosure homes available in your state. The FHA as part of HUD provides a website where homeowners can search for HUD properties for sale. You can search for these properties here: http://hudhomestore.com/HudHome/Index.aspx. | ||
#*Non-government websites also allow you to search for FHA foreclosures. You can locate these websites by conducting an internet search for “FHA foreclosure properties.” | #*Non-government websites also allow you to search for FHA foreclosures. You can locate these websites by conducting an internet search for “FHA foreclosure properties.” | ||
