Buy a Michigan HUD home with only $100 down and get $2,500 in closing costs!
- Revised Owner Occupant Sales Incentive as of October 1, 2008
$100 Down Payment Finance Option (FHA financing only)
$2,500 Sales incentive (for properties with a purchase price $25,000 or greater)
Beginning October 1st, 2008 all owner occupants (excluding HUD approved non-profit organizations, Good Neighbor Next Door participants, and units of local government) will receive $2,500 at closing for properties with a purchase price of $25,000 or more.
The $2,500 sales incentive can be used for the following items (for offers accepted after 10/1/08):
· Closing Costs
· Tax Pro-rations
· Repairs to the home
· Replacement of items in the home
· Pay down the unpaid principal balance of an FHA insured Mortgage
If the funds are used for repair or replacement of items the incentive will be deposited in a repair escrow account for FHA financed sales or reimbursed upon submission of receipts.
The $100 down payment financing is available on most properties through FHA approved lenders. Please note that the $100 down offer applies if the purchase price is less than or equal to the appraised value of the property. If the purchase price is greater than the appraised value, the purchaser may obtain a new FHA appraisal to support the higher mortgage amount or must pay cash in the amount of the difference between the appraisal and the purchase price less $100.
Call David Elya 586-286-3283 for more info and a list of Michigan HUD properties
$2,500 in closing costs would be great but I absolutely know we won't be buying any houses of $25,000 for quite some time. Our target market is North West Detroit and the prices we have to pay are just not that high. It is interesting that HUDs doing this, though. We've noticed that there are more deals now with HUD than there has been. Probably just because of an oversupply, especially with HUD because they were known for being so unflexible.
I would blog about this on www.michigiganrealtormasterminds.collectivex.com and www.motorcityconnect.com as I get a lot of questions from both sites about buying on deals like these... thanks!