Columbus Ohio HUD Home Update February 2010

$100 OHIO FHA HUD Down Payment Program Discontinued

Effective February 12, 2010, any Central Ohio HUD properties listed and or sold with FHA financing are no longer eligible for the $100 down payment incentive.

Also, the sales allowance bonus of $2500 for owner occupant buyers will be discontinued effective February 12, 2010, for all new contracts accepted on or after this date.

HUD will still pay buyer’s closing costs

When buying a HUD home in the Columbus Ohio area, you can still request HUD to pay up to a 3% contribution toward your closing costs.  However, the amount you ask HUD to pay for your closing costs will be factored into your bottom line bid price.  For example if you bid 100,000 on a HUD home and ask for $3,000 in closing costs, HUD will consider your bid to be $97,000.

Many bargain distress sales in the Columbus Ohio area

If you’re looking for a bargain, keep in mind that HUD foreclosure properties are not the only distressed properties for sale in the Columbus Ohio area.  There are many other “distressed” properties such as bank owned foreclosures and short sales including homes and condos for sale throughout Central Ohio. You have to know what to look out for though, because not all foreclosures are a good deal.

Foreclosures Need Work

Most foreclosure homes need a minimum of a good cleaning, paint, carpet and flooring updates.  However, some need so much work that they may not be a good deal by the time you are done making all the repairs, on top of the cosmetic fix ups.  Often there are hidden defects that not even your home inspector will be able to detect and are not discovered until after you live in the home.   So it’s wise to budget for additional repairs beyond what can be seen.

HUD will allow you to finance repairs of less than $5000 when getting an FHA mortgage.   FHA 203k rehab loans offer an alternative for other homes that need more than $5,000 in work and allows you to finance money for repairs into your mortgage.  Keep in mind that FHA 203k loans often have slightly higher interest rates and closing costs than traditional FHA mortgage loans.  I can recommend a local Columbus Ohio mortgage banker who offers FHA 203k loans, if you would like more details on this loan option.

Non-foreclosure homes can be a good deal too

Due to the nature of the current buyer’s market in Central Ohio, I have found many sellers are motivated to sell and there are opportunities to get a good deal on a non-foreclosure home or condo as well.  I’ve seen many sellers list their homes for less than they paid when they bought the home.  Your home buyer’s agent should help you evaluate the property value depending on the home’s condition and current market factors, enabling you to make a wise decision on any home you buy.

Rely on an experienced Columbus Ohio Realtor® and Accredited Buyer Representative

As an experienced Columbus Ohio REALTOR® and Accredited Buyer Representative, I’d be happy to help you find a good deal on your ideal home anywhere in Central Ohio.  Best of all my services are FREE to you.  You pay nothing to have a buyer’s agent represent your best interests when buying a home in Central Ohio.

To learn more about buying a home anywhere in the Columbus Ohio area visit:

ColumbusCastles.com/Buyers or CONTACT PETRA at 614-895-0496 to get started or complete our FREE HOME FINDER SERVICE REQUEST to receive daily email updates of new Columbus Ohio real estate listings in the Central Ohio area.

Leave a Comment