When subprime loans disappeared in 2008 home buyers found alternatives with government secured loan programs. The Veterans Administration (VA) and the Federal Housing Authority (FHA) have replaced subprime lenders when it comes to zero down financing and low credit score qualifying.
VA and FHA loans are especially effective in when you want to buy a HUD Home. As HUD is essentially the same agency that insures FHA loans, they have a great interest in quickly selling homes they had to repo from oveleveraged home owners. Therfore, they offer special financing terms to buyers of HUD homes, including a $100 down payment program.
Columbus VA Loans are your best option, if you qualify as a veteran. With these loans you do not need any downpayment and VA will also cover your closing costs. This loan works equally well for HUD homes or any regular house purchase. I need to note that all of this applies to owner occupant buyers and not investors.
A few weeks ago one of our clients purchased a home with a VA loan. He did not have to pay for closing costs nor did he make any down payment, but he walked out of the closing with a check for $1,500. This payout was fully approved by the lender and by VA.
Columbus FHA Loans are a great financing option if your credit score is low (at this time banks accept credit scores as low as 580 for FHA loans) and your property meets FHA guidelines. In general, they require a downpayment of 3.5% of the purchase price, but they also allow the seller to pay up to 3% of the buyer’s closing costs.
If you plan to buy a HUD Home FHA financing is your best choice, because HUD will lower your down payment to $100 and still cover your closing costs. On top of it HUD grants major discounts on its inventory homes, so you probably will be the house significantly below market value.
A real estate agent or FHA approved lender will be able to answer specific questions about Columbus Mortgage programs for HUD Homes. To find out more, you may want to visit HUD’s website, call 1-800-CALLFHA or see the Columbus HUD Homes Blog.
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Tags: columbus loans · columbus mortgage · columbus realtors · columbus realty · FHA · VANo Comments
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