This is a very simple process, but you have to be patient. Let’s first establish what a HUD home is.
A HUD home is a home that consumers have lived in and then defaulted through their FHA loan. HUD actually takes the home and pays off the remainder loan amount, then sells the property. HUD homes are a great way for consumers to obtain a home and consumers may pay less than market value.

There are some things that you must know if you are interested

• Anyone has the option to purchase a HUD home
• You must obtain a HUD registered real estate broker that can bid on the property for you
• Homes are sold AS IS through the HUD program
• FHA loans are available for HUD properties
• Homes are sold through listing agencies

You can find some great deals when you are in the market. HUD homes are a great place to start. The only thing that can be frustrating is that you have to bid on the house. It’s almost like bidding on a car in a car auction. You don’t know how bad the other person may want the item.

Normally, just like with any item that you have to bid on, there is a starting bid. This means that HUD will place a starting bid on the property. So, let’s say the home is worth $170,000.00 and foreclosed. HUD pays off the remaining balance $160,000.00 and auctions the starting bid for $120,000.00. This is just an example not actual numbers.

You can search for HUD home at the following like below

http://hudhomestore.com/HudHome/Index.aspx

More information on HUD

http://en.wikipedia.org/wiki/Hud_homes

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H & I Credit Solutions

The benefits of an FHA loan may surprise some consumers. FHA stands for Fair Housing Association and surprisingly they actually do not provide loans. In fact, they actually insure the loan to limit the risk to the bank or institution that provides the actual loan.

FHA loans are a little easier on the consumer that wants to purchase a home. Conventional loans have more strict guidelines. FHA loans can allow consumers to easily qualify for a home loan.

Below are some of the benefits of FHA loan.

1. FHA requires a 3% down payment
2. Lower insurance
3. Lower closing cost (regulated by HUD)
4. Obtain a loan 2 years after Bankruptcy
5. Obtain a loan 3 years after Foreclosure
6. Lower credit score requirements

When FHA loans were introduced, their intention was to assist first-time home buyers; consumers that were not first-time home buyers can also take advantage of FHA loans.

FHA rules are not as strict on regulations regarding debt-to-income ratios, alternative credit, job requirements and past bankruptcies/foreclosures.

FHA loans also require a complete termite inspection report as well as other property condition reports just to qualify.

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H & I Credit Solutions

Getting a home loan or refinancing your existing home will now require a better FICO score than before. The FHA is trying to limit it’s exposure, and our nation’s, to bad debt and therefore, implementing much more tighter controls for lender approvals. You will find below the four major topics of the new FHA rules that are set in place.

It’s anticipated that these rules will go into effect in the spring or early summer of 2010.

Higher Insurance Requirements – This change requires that an upfront mortgage insurance premium required of a borrower would be raised from 1.75% to 2.25%.

Larger Down Payment – Only those borrowers with FICO scores about 580 would qualify for the low 3.5% down payment. Those borrowers with a score lower than 580 would need a down payment of at least 10%.

Lower Seller Concessions – This is the money returned to a borrower in exchange for agreeing to a higher home sale price. This seller concession would drop from 6% to 3%.

Higher Minimum FICO Score Requirements – In addition to needing a minimum FICO score to qualify for the lower down payment option, it may be difficult for a borrower to even begin the process with FICO scores below 600. This higher FICO score requirement is not limited to FHA loans, but is being adopted throughout the mortgage industry.Having said that, what was once a fair FICO score may now only be considered a poor score.

H & I Credit Solutions