HUD Enhanced Buyer Opportunites
August 28, 2018
Secretary of Housing and Urban Development REO volumes have declined significantly over the previous few years. Many potential buyers look for these properties for an opportunity to build sweat equity as a step into homeownership. The opportunities are fewer and further between, yet, HUD has continues to enhance their program for the opportunities that do exist.
One of the biggest enhancements, in my opinion, was increasing the escrow program for required repairs to meet FHA guidelines from $5,000 to $10,000 in the FHA 203(b) repair escrow program. This has opened up many more properties that do hit the market for FHA financing with less hurdles for the buyer as they are not required to go into a FHA 203k loan.
FHA 203k financing is an excellent opportunity for a buyer to make required repairs to meet FHA guidelines PLUS cosmetic desirable updates. It is much more involved that a 203(b) repair escrow that allows only for required repairs, however. Buyer pools should not be afraid of either process as long as they have a valued, experienced lender involved.
Christy "Cj" Pace
Broker - Pace Probity LLC dba HouseSold Realty
Knoxville TN - 865.357.1537