HOW TO BUY A HOUSE WITH 00 (HUD Home)

This is the exact site where you can find homes to purchase with only $100 down!!

What’s up everybody steve here that’s right this is noble you can buy a house with a hundred dollars down and i’m gonna show you exactly how to do that in this video now if you haven’t heard of hud it stands for us department of housing and urban development now when hud takes ownership through the foreclosure process they go to open market make it available for

Anybody to purchase however usually in the first two weeks it’s only available to anybody who’s going to occupy the property for the primary residence thereafter investors and second home buyers can go ahead and make their bids as well this specialty fha special financing program does in fact allow anybody that’s going to be an owner occupant by the hud home

With a hundred dollars down now you might be saying well what about closing costs well as you can see in this screenshot hud does allow a percentage of closing costs to be paid by hud for the buyer on the buyer’s behalf in many cases that percentage is three percent you could negotiate a higher percentage based on your closing costs and in many cases that will

Cover your entire closing costs for the purchase of the property now you must make sure that this is part of your offer of your bid so if you are going to bid on a hud home and include hud paying for your closing costs be sure that you hire the right real estate agent to make the offer on your behalf now some of these properties are in very rough shape now you

Might be saying look okay i bought a property with a hundred dollars down but it’s gonna cost me twenty thirty forty thousand dollars to get this property into livable condition and i can tell you there are two other programs that you can do for financing where essentially the cost to repair the property is going to be included in your mortgage these two programs

Are called fha 203k and fha 203b now it’s very important that you guys speak to the professionals in your area about these loan programs so be sure that you do your due diligence and hire the right person so a prime example of utilizing these financing techniques we found a property for a buyer of ours and it needed a lot of work and it really was not livable

Because the electric was in really bad shape is very dangerous and also the hvac need to be completely replaced as well as the duct work now this buyer did not have the funds to repair these items before moving into the property so he did elect to do this special financing program now if i recall is roughly about 20 to 25 thousand dollars where he was able to

Get that money comparable to a draw if you’re going to do new construction purchase now there’s specific guidelines that are associated with this where those monies cannot ever go into the bank account of the borrower they’re going to have to go directly to the contractors who completed the work and also usually an appraiser is going to come out and ensure that

The work has been completed to par now some other restrictions with the 100 program is the buyer cannot buy another hud property in the last 24 months also they’re gonna have to meet specific guidelines in terms of their fico score their credit score as well as ensuring that they do have the income to support the financing for the property okay now let’s jump

Into exactly how to find these properties now i’m going to jump onto my laptop here and show you guys exactly the back end the program that i use is called foreclosure.com i’m going to put an affiliate link down below if you guys do utilize that link we do get a small commission and it helps to support this channel but let’s go ahead and jump into it all right

Now once you sign up on foreclosure.com i think they have a seven day trial or you can back out within seven days and your card won’t get charged something like that so you guys want to check that out more into detail but this is the home page and as you can see find your foreclosures in your area today now i do want to preface foreclosure.com has a lot of other

Creative ways to find other properties like pre-foreclosures foreclosures and so forth so it’s not just hud homes and i do plan on doing a series on this site to show you guys the back end on searching other properties as well now you can see from uh right here the total amount of foreclo or pre-foreclosures short sales and so forth now if i hover over the map

I can actually click on what state that i’m interested in i do reside in florida so let’s go ahead and just click that now it does provide the entire state information as you can see here how many properties in the different types whether it’s short sales sheriff’s sales foreclosures bankruptcies and so forth even tax liens and i can actually come into here and

Click on the exact county if i do want to go county by county but in this example i’m just going to do the entire state of florida all right now once we’re in this screen here we’re going to go over to listing type now you have two options in terms of hud and 100 down hud shows all the properties that are available for hud homes and then you’re going to want to

Click the hundred dollars down one because there are specific properties that will not allow the hundred dollar down ones usually those are like condos so we’re going to go ahead and click that and it’s showing 61 results in the entire state of florida so we’re gonna go let’s check out this house looks pretty nice actually looks really nice in brooker florida i

Don’t really know where that is let’s check out a couple pictures here very cool not bad three bed two bath almost eighteen hundred square feet so we scroll down and each of these listings are gonna show a foreclosure timeline not in foreclosure pre-foreclosure auction and bank owned usually this is the date that the property went to market and it shows that it has

Been foreclosed on we can see when the list pendants was issued liz penance is essentially the start of the foreclosure process um it’s when they file in the courts basically the initiation of the foreclosure process we’re going to scroll down and we’re going to see property information it’s going to show all the information pertaining to the property in terms of

Price beds baths year built and so forth it also syndicates all the public record information as well so if there’s any discrepancies from mls to public record you’re going to be able to find out that information here and then property description now this is basically the description from the real estate agent that listed the property and just uh describing the

Property and now if we scroll down indeed it is the hundred dollar down hud home purchased this incredible hud home with just a hundred dollars down payment u.s department of housing and urban development is a federal agency that insures mortgages to homeowners through fha therefore when banks foreclose on hud guarantee mortgages the government agency acquires

The properties and often offers them for sale at a super low price to the public hud houses are among the very best deals in real estate today and a quarter and accordingly don’t last long on the market act fast here you’re going to find the contact information for the real estate agent the listing agent as mentioned previously you’re going to want to reach out

To your own real estate agent if you have one and it’s not going to necessarily cost you any money to hire a real estate agent to negotiate on your behalf and many times also with the 100 hud home they’re going to require in most cases basically full full price offers for uh the hundred dollar down uh we scroll down there’s a different additional information

Pertaining to credit as well as uh information pertaining to mortgages so you can basically come here calculate what your payment could be and also it’s pretty cool is the listing history it actually shows when it was in pre-foreclosure and the actual foreclosure now as mentioned i’m going to do a series on this site foreclosures.com because i think it does do

A fantastic job at breaking down the different categories of essentially distressed sellers if you guys are in the market for say a hud home you guys gotta act quickly in my experience when these things hit the market they do go very quickly a lot of times they go within that two-week period to an end user a primary homeowner and not necessarily an investor and

Also besides the foreclosure.com uh affiliate link down below i’m also gonna put a link to the direct site for a hud so you can research more on the hud program the 100 program as well and let me know your thoughts about this in the description below if you got any value out of this i appreciate a big thumbs up and if you have not subscribed before go ahead and

Do that if you have interested in learning more about real estate investing and investing all together i appreciate your support thanks a lot

Transcribed from video
HOW TO BUY A HOUSE WITH $100 🤑 (HUD Home) By Steve Daria