Houses for Sale
When seeking out houses for sale it's a good idea to spend time learning about home buying programs, government grants, and financing options. Doing so can help buyers save thousands in interest rates and closing costs, as well as obtaining properties for the best price.
There are all kinds of houses for sale. From handyman specials to elegant mansions and everything in between, buyers can find nearly any type of property they desire. While the foreclosure crisis has left many homeowners without a home, it has also opened the door for buyers wanting to purchase affordable housing.
One benefit of buying bank owned real estate is many properties are eligible for HUD's Neighborhood Stabilization Program grants. Each year, the government provides grants to people that purchase homes in regions with excessive foreclosure rates.
NSP grant funds can be used to buy and redevelop foreclosure homes that are intended for use as residential housing for low-income families. Both private buyers and real estate investors can apply for NSP funds through local HUD offices.
Another program worth exploring is Fannie Mae Homepath. This government sponsored home buying program offers an abundance of cheap homes for sale that can be financed through Home Path Mortgage.
Many people find Home Path Mortgage appealing because of the low down payment requirement of 3 percent. Furthermore, people that finance through Homepath can make use of down payment assistance which is prohibited with conventional home loans. This means that down payment funds can be acquired through outside sources such as personal loans and financial gifts.
Homepath participates in public funds programs, so buyers that qualify for NSP grants can maximize their buying power. Individuals that use public funds to buy houses are only required to provide $500 earnest money when buying Fannie Mae Homepath properties.
Most of the national banks have an abundance of bank owned homes for sale. Some of the more popular include: Bank of America, Wells Fargo, Citibank, Wachovia, Chase, and HSBC. Buying bank owned homes isn't much different than buying other properties, but the process can take longer and buyers should prepare to engage in several counter offers.
The majority of real estate owned by banks is sold through local realtors. Beware of companies offering foreclosure lists for sale. There is no need to purchase foreclosure listings because banks provide lists at no charge on their real estate websites and via their assigned realtors.
Short sale homes are another option for buyers seeking affordable housing. The process for buying short sale realty is a little more complex than buying houses from individual sellers. When lenders enter into short sale agreements they let homeowners list their property for less than the amount due on their home loan.
Since banks are going to incur a financial loss on these properties there is rarely room for price negotiation. Buyers sometimes have to pay more than the asking price if multiple buyers submit offers on the same property. Acquiring short sale houses can take 3 to 4 months due to the extensive amount of paperwork that is involved.
A lesser known way to buy homes for sale is to seek out real estate investors that participate in wholesaling. Some investors specialize in buying bank portfolios that consist of multiple properties. When wholesalers buy houses in bulk they get a better price and can pass savings along to buyers.
Some investors and individual sellers engage in owner will carry financing. This strategy can be beneficial to people that don't qualify for conventional home loans. Essentially, sellers act as the mortgage financier and carry the loan for a set time period. This method gives buyers time to improve FICO scores so they can refinance the home when the contract expires.
Our home buying article library offers additional details about Fannie Mae home loan programs and provides numerous tips for locating affordable homes for sale. You'll also find information about investing in bank owned homes, short sale properties, and buying directly from wholesale real estate investors.
Published on January 15, 2012 at 03:11 AM | Comments: 1