Is There A Downside To Making Offers On Huds And.....
VAs. In Ron' s course he said that he used to buy alot of them, but he doesn' t now because they change the rules.. What does he mean?
Any feedback would be greatly appreciated,
Murphy
The VA would extend benefits to the new buyer even if they were not in the military. They would essentially co-sign the loan for you. They don't do that any more.
Also, The VA and HUD are better known now, There are more people involved now, and quite often, the bid amounts are higher than the properties would bring if they weren't offfered by HUD or the VA.
You must now submit through a Real Estate Agent, and have pre-qualification in place for the financing. All in all, it's just not as attractive a program as they used to be.
Jeff
Murphy:
Ron is absolutely right. Hud has come out with a lot of programs that cater to owner occupants rather than investors:
-Officer/Teacher
-Non-profit
-Owner Occupant Priority
It definitely is not like the old days.. I remember when it was not uncommon for an investor to get 1-2 deals a week and purchase 3-10 deals at their quarterly auctions. Those days are gone!
Best Riches,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 08/21/2004 ]
Ron, VA is in the process of bringing back seller (VA) financing to buyers of thier properties. It should only be a few more months and Ocwen will be underwriting the loans for VA. Ocwen will be charging an up-front fee and then a closing (processing) fee. VA will finance 100% for owner occupancy and either 90 or 95% for investors (not decided yet). Good luck. Just remember, as was stated earlier on your post... not all VA properties are listed for a "steal". Most are priced at market or better and bids are on the high side.