Is there financing available on HUD properties?
Yes the properties can be financed under the FHA 203b mortgage program. This financing program is only available if the property meets minimum property standards, or if it is sold with repair escrows that are less than $5,000.00. If the repairs on a property are $5000.00 or greater, the property cannot be financed under the FHA 203b mortgage program. This means that the loan is uninsurable and the property can only be offered for sale in “as-is” condition. There is, however, a mortgage program available for owner/occupants only known as FHA 203k. This program allows owner/occupants to finance the cost of repairs necessary to have the property meet minimum property standards. If the property is sold in “as-is” condition, then only FHA 203k, or some other source of private mortgage financing can be used to purchase the property.
