Foreclosed homes inventory continues to dominate the market. Buyers looking for a great price on a home purchase know to check foreclosed homes first. This is reflected in recent reports showing the pace of newly constructed homes fell in 2011 to the lowest level since 1963. This news is not really too surprising to us here at RealtyStore.com, since we've been watching the bank foreclosures, government owned homes and other distressed real estate for sale drive prices down and keep them low.
Home buyers seem to agree. The huge drop in sales of new homes shows buyers prefer to avoid paying premium prices for newly built homes, and instead, snap up REO homes for sale at low prices that were unimaginable just a few years ago.
An even more appealing option when buying foreclosed homes for sale is the HUD $100 Down program. For a limited time, thanks to HUD homes that are now owned by the government, previously frustrated home buyers can now answer the question: What does it take to buy a home in today’s market? The answer is a down payment as little as $100!
Rolled out in 27 states across the U.S., the $100 Down program makes government owned foreclosures available for purchase with just a $100 down payment. And, these homes are available with an insured FHA loan for owner-occupants. Monthly payments can be so low, buyers find it cheaper to own than to rent a similar home.
Plus, these HUD homes appear priced to sell with many listed below the national average home price. And, thanks to these low, low purchase prices, buyers could also afford to add a government sponsored 203k home improvement loan, and still keep their monthly payments low enough to make owning a home truly attainable.
Looking at this program, it is clear to see how very attractive it should be. It provides the best of both worlds: an amazing low down payment to buy the home, and no additional money needed up front to upgrade the house into a dream home.
And it gets better yet. The program can also cover up to 3% of closing costs. This can add up savings of hundreds, or thousands, more dollars over the life of a loan.
The ‘$100 Down’ foreclosed home buying program is available for a limited time on foreclosure listings on REO homes from HUD in these states: Florida, Texas, Illinois, Minnesota, Georgia, Colorado, Oklahoma, Kentucky, Missouri, Tennessee, Arkansas, Iowa, Kansas, Montana, Nebraska, New Mexico, North and South Dakota, Wisconsin, Wyoming, Utah, Alabama, Indiana, Mississippi, North and South Carolina.
Other states may join the program in 2012, but today's home buyers need not be discouraged if their state is not yet listed. As we reported last month in our Foreclosure News section, the surge in home foreclosures seen at the end of 2011 is setting up 2012 to be another great year for home buyers across the country. Other REO foreclosures from HUD, Fannie Mae foreclosures and bank REOs will continue to compete aggressively for buyers by offering some of the lowest prices in decades. These forclosed homes for sale may be even better deals than the $100 Down homes when all is said and done.
This month's news shows the housing market continues to evolve. RealtyStore Foreclosure News will also continue to watch for the latest developments and report on those issues to help buyers of foreclosed homes.