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Attention Georgia Home Buyers - “Buy HUD with FHA”
Revised 10/4/2007
FAQ’s
1. Are all properties eligible for the $100 down incentive?
a. No, only the properties advertised to the general public,
beginning with the extended listings on October 5, 2007 are
eligible for this incentive. The properties currently listed on
the General Public List – Owner Occupant Preference with list
dates of September 26, 2007 and October 3, 2007 are not eligible
for this incentive. If the properties on these lists are not
awarded on the first bid opening, they will roll over to the
extended listing; identified as General List – All. Once these
properties roll over to this extended list, the $100 down
incentive will apply. The incentive will apply to the properties
on our General Public List – Owner Occupant Preference with a
list date of October 10, 2007. In addition, this incentive is
available to “Katrina tenants” who purchase their HUD home with
FHA financing.
2. Is any property on the extended listing on October 5, 2007
eligible for the $100 down incentive?
a. Yes. Any extended listing still listed on October 5, 2007 is
eligible for the incentive.
3. Are lottery properties (e.g.Hurricane Evacuee or GNND)
eligible for the $100 down incentive?
a. Lottery properties already have provisions for a $100 down
payment. If the property is acquired with a 203(k) loan, the
$500 selling broker bonus is available.
4. I submitted a bid and was awarded the property on October 5,
2007. Does the $100 down incentive apply?
a. No. Properties currently under contract and any properties
awarded on, or prior to October 5, 2007 are not eligible for the
$100 down incentive.
5. How do I indicate that my buyer wants to take advantage of
the $100 down payment incentive?
a. Enter $100 as the down payment amount on line 4 of the
contract. The mortgage amount and the length of the mortgage can
be filled in with TBD.
6. If my buyer uses 203(k) financing to purchase a home, do both
incentives apply?
a. Yes. However, this financing option is not available for all
properties. The 203(k) program may be used only on properties
listed Uninsurable (UI). However, FHA also offers a financing
option designated 203(k) streamline. 203(k) streamline financing
can be used on properties listed Insured (IN) or Insured with
Escrow (IE). Both incentives apply if the buyer uses 203(k) or
203(k) streamline financing.
7. How do I indicate that I want the $500 selling broker bonus?
a. This incentive applies only to purchases to an owner occupant
buyer using 203(k) financing. Our office will determine whether
or not this incentive applies and you will be informed of our
decision on the Notice of Contract Acceptance. We will notify
the closing attorney of our decision at the same time and the
incentive will be displayed on the HUD1 statement.
8. My buyers won the bid, but bid more than the appraised value
to ensure that they would win. Can they still buy the home for
$100 down?
a. In the past, FHA guidelines required that the buyers bring in
the “overbid amount” in the form of cash to the closing table.
HUD will now allow the buyer(s) to obtain a new FHA appraisal to
support the higher purchase price. The cost to obtain this new
appraisal will be the buyer’s cost to bear. If this new
appraisal is not equal to (or greater than) the purchase price,
the buyer will be required to pay cash in the amount equal to
the difference of the appraised value and the purchase price;
less $100.
9. My buyers were awarded a bid on an eligible property and
started out using conventional financing. They would now like to
switch over to FHA financing. Do the incentives apply?
a. Yes. So long as the property meets the eligibility
requirements for the incentives, buyers can change financing and
still take advantage of the $100 down payment incentive.
10. How long will this incentive program last?
a. At this time, HUD has not published the length that these
incentive programs will be in effect.
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