Costa Mesa Real Estate – Are HUD Homes Available?
Well, the quick answer is: sometimes.
It doesn’t happen too often, but every once in a while we do get a home that meets the governments’ HUD homes programs. There was recently a home in Princeton Drive in Costa Mesa real estate that while it needed a tremendous amount of fixing up, it was a super good deal for a 3 bedroom home in the $300,000s. Most homes on that street are selling between $450,000 and the low $500,000 range.
Costa Mesa Real Estate HUD Programs
Fireman and other public servants can qualify for the government HUD program
So what are Costa Mesa HUD Homes? What’s more interesting for those of your with specific backgrounds (and if you can bear to buy a home away from our dear Costa Mesa 🙂 )you can take advantage of some unique programs that help you buy these government owned homes. Law Enforcement Officers, Pre-Kindergarten through 12th grade Teachers, Firefighters and Emergency Medical Technicians can all contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door program.
HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, borrowers must commit to live in the property for 3 years as their sole residence.
Program Details
- 30 year fixed and 15 year fixed loan terms
- Minimum $100 down (!!!! – how great is that to buy a home with???)
- Closing costs may be financed
How a Costa Mesa real estate borrower participates in the Good Neighbor Next Door Program
- The borrower checks the listings for their particular state/area:
- The borrower follows HUD’s instructions to submit their interest in purchasing a specific home.
- Borrowers must offer the exact HUD list price when bidding on any GNND property. They will then receive a 50 percent discount off of that list price.
- If more than one person submits on a single home, a selection will be made by random lottery.
- A sales contract is accepted by HUD.
- The sales contract must indicate “Good Neighbor Next Door” to obtain the $100 down payment feature.
- HUD requires that the borrowers sign a second mortgage note for the property discount amount. No interest payments are required on this “silent second” provided that they fulfill the three-year occupancy agreement.
Please be sure to let me know if you have any questions that I may be able to help with, even if the home you are considering is outside of Costa Mesa @ 714-743-9882 or e-mail.
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