Isn’t it odd how home sales are up and down like a roller coaster these days? The current $8,000 tax incentive program comes out and home sales begin inching up. The HVCC appraisal process gets implemented and home sale start to fall off. The Fed’s get their hands into Fannie Mae & Freddie Mac and Fannie struggles. Freddie works hard at keeping control and they are now turning a profit. FHA/HUD is still standing strong and now stronger than ever. FHA/HUD’s lower reasonable guideline requirements are proving to work even with only 3.5% down payments. Fannie & Freddie need to take a close look at this model and implement it into their own guidelines in order to stay competitive.
FHA/HUD has rolled out a new program that will allow you to purchase a FHA/HUD REO property with only a $100 down payment. This is only available to owner occupied properties only. There are some other restrictions to this program that may or may not work for you but it should be considered if you are looking to purchase a REO property. FHA/HUD is doing this to get their REO properties off of their books. If we could just get the banks to do this then credit funding will loosen up. Speak with your Realtor is get additional information.