First off Andy, buying HUDs and using conventional financing is a pain in the [butt]. HUD requires most closing funds to be wired in to the HUD account prior to closing and NO normal mortgage company will do that for you. Look for the HUDs that offer the 203K loan. 203K loans will give you the purchase amount plus fix up costs. You can buy a HUD every 2 years as a owner occupant and get better deals.
Start looking for hardmoney lenders also. Use their money to take down the house then refi. after you have title. Less head ache.
You need to educate yourself better before you start jumping out there.
I know about HUD houses, hard money, private money, etc,I haven’t bought as many houses as some on here, but more than most…,my post was if you don’t have proof of income, how are you going to get a mortgage,your not in todays enviroment,
and yes, people buy HUD homes with conforming mortgages all the time
Sorry I was in a [bad] mood yesturday and didn’t mean to be so blunt. I’m using local banks to fund my deals and had to set up lines of credit to do them. Here most of the HUD homes need work done to them and since you’ve bought HUDs you know they don’t let you do any work to them( they won’t here anyway) prior to closing. So if you know of people buying using conventional financing, I would say the houses are in pretty decent shape.
Thats all i can suggest is get set up with small town local banks. Not the big boys like BofA or Chase. Small ones that you can have a personal touch with. They lend more on a personal relationship then on guidelines.
I hardly look at HUD properties since I got burned on one,the HUD property report showed very little wrong, and the house appeared to be in the condition described,except that someone had gone into the attic and cut all the wires, they didn’t steal them, just cut them at all of the drop points.\
Since my offer was based in part on the HUD report, I thought I could easily get my EM back,wrong, after a few months they finally agreed to give me half back.
There are some good deals on HUD properties, but I’m concerned someone will vandalize the property right before closing, and I either close and have to pay for repairs out of my pocket, or potentially lose EM
I had a bid on a HUD house where HUD backed out of it because the foreclosure had been improperly completed. It was 100% their problem and they tried to keep my earnest money after they said they were backing out. I finally got it back. I was surprised they gave me a hard time since it was their problem.
Then the property got sold to another investor during the owner occupant bid period. In the end, I was glad I didn’t get it but I was pissed at how they handled everything.