HUD brings your up-front costs down.

The costs of buying a home is more than just the price you agree to pay for it. Before you move in, you'll have to pay various charges, which we explain below. The good news is with HUD Homes these costs may be lower than they are with other homes.

Down payment.

Most people know that a down payment is a percentage of the price of the home that must be paid up front, in cash. Many people don't know that HUD can reduce that down payment from the 10% to 20% to a much more agreeable figure of 3.5%, or even less! Sometimes There are $100 Down Payment Incentive Available.

 

Closing Costs.

This term covers various fees your lender charges for providing your loan, and other expenses. Closing costs typically add up to about 3% or 4% of the price of your home, depending on where you purchase it. But when you buy a HUD Home, these costs are often picked up by HUD--if they are specifically requested, by dollars amount, in the sealed bid offering. If you buy a HUD Home, HUD may pay many of your usual and customary closing expenses plus real estate sales commissions up to 6%. Just remember that closing costs and sales commissions are deducted from the bid amount in making the decision as to which offer a more competitive bid, pay your own closing costs. This makes HUD's net return greater, making your bid more favorable an increasing the likelihood that HUD will accept your offer.

 

Commissions.

These are paid to the listing broker & HUD Home Network by the seller, and usually amount to 6% of the cost of the house.

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