subject: First Time Home Buyers are Moving to the Front of the Line [print this page] First Time Home Buyers are Moving to the Front of the Line
If you're a first time home buyer in one of the many real estate markets that are dominated by foreclosures and bank-owned properties, you're undoubtedly frustrated with the "second class citizen" treatment you've been receiving when it comes to the offers you've been submitting.
You did all the right things: you did your homework and found the right neighborhood for you and your family, you hired a good real estate agent who specialized in that neighborhood and helped you write a competitive offer, you had a solid pre-approval letter from a lender who specialized in first time home buyer loan programs.
The result?
Your offers were passed over or ignored by the banks and their agents as they accepted other offers (often times for a lower price) from investors paying cash or conventional financing with larger down payments. You might also have lost out to offers that were made for significantly more than the listed price.
This frustration has led many of your peers, to "drop out" and put their dream of homeownership on hold. Dropping out when there is this convergence of of affordable prices and the lowest interest rates in a generation.
Well, there is light at the end of the tunnel!
The Department of Housing and Urban Development (HUD) is releasing their foreclosures, known as "HUD homes" and first time home buyers are given preferential treatment in the HUD bidding process.
"Now is a great time to buy a HUD home, interest rates are low and there are many affordable properties available." according to Shari Potts, Broker/Owner of Inland Realty Services and a HUD local listing broker. "There are many great properties under $100,000", she added.
First time home buyer benefits on HUD homes:
For the first 30 days of a HUD home listing only owner occupied offers will be considered
HUD provides the appraisal on all HUD homes
Buyers bidding more than the list price, will have to pay the difference in CASH
HUD will pay up to 3% of buyer's closing costs
You can only view HUD homes accompanied by a licensed real estate agent and you must have a pre-approval letter from a lender authorized to do FHA loans.
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