Buy a Home with only $100 dollars down in Florida

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers. In select states, from now until October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home!

How it works:
1) Buyer must be an owner-occupant
2) Must utilizing financing insured by the Federal Housing Administration (FHA)
3) Standard FHA underwriting guidelines apply
4) Sale must be for the full amount of the current list price
5) HUD may contribute up to 3% to your closing costs in some cases!

What's even better is that HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on your home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan!

What this means is you can find a property that needs some TLC, fix it up however they want to (up to $30K), and finance the whole thing for only $100!!!

Qualifying States Are:

• Florida
• Georgia
• Kentucky
• Illinois
• Indiana
• Mississippi
• North Carolina
• South Carolina
• Tennessee
• Caribbean
• Alabama
• Oklahoma
• South Dakota
• Texas
• Wisconsin
• Wyoming
• Utah
• Arkansas
• Colorado
• Iowa
• Kansas
• Louisiana
• Missouri
• Minnesota
• Montana
• Nebraska
• New Mexico
• North Dakota

New Short Sale Incentives to Homeowners

Bank of America is offering Florida homeowners up to $20,000 to short sale their homes rather than letting them linger in foreclosure.

Only homeowners whose short sales are submitted for approval to Bank of America before Nov. 30 will qualify. The homes must have no offers on them already and the closing must occur before Aug. 31, 2012.

A short sale is when a bank agrees to accept a lower sales price on a home than what the borrower owes on the loan.

The Bank of America plan has a minimum payout amount of $5,000.

A spokesman for Bank of America said the program is being tested in Florida, and if successful, could be expanded to other states.

Wells Fargo and J.P. Morgan Chase have similar short sale programs, sometimes called “cash for keys.”

Similar to the federal Home Affordable Foreclosure Alternatives program, or HAFA, which offers $3,000 in relocation assistance, the Bank of America program may also waive a homeowner’s deficiency judgment at closing.

A deficiency judgment in a short sale is basically the difference between what the house sells for and what is still owed on the loan.

Guidelines for Bank of America's new Florida Enhanced Short Sale Relocation Assistance program state that a borrower may use the incentive to pay off existing liens or for relocation expenses. FHA, Ginnie Mae, VA and USDA loans are not eligible. Details are available by calling 1-866-880-1232.

•Wells Fargo offers incentives of $10,000 to $20,000 to certain homeowners who opt for a short sale or who transfer a home's title back to the bank. The program is aimed at properties in Florida and other states known for protracted, judicial foreclosures. The money is available only on first-lien loans that the company owns, which is about 20 percent of its portfolio. Details: 1-800-678-7986.

•JPMorgan Chase has not reported how much it offers for short-sale incentives, though real-estate agents have reported sellers getting $20,000. The lender also has declined to specify how it determines the amount of its incentives. Details: 407-248-3945.

•Citibank has reported it offers an average of $12,000 for borrowers when it owns the mortgage. The amount is determined upfront and varies depending on a borrower's financial circumstances and mortgage-payment history. The money is disbursed when the short sale closes. Details: 1-866-272-4749.

Reduction in FHA loan limits

As of October 1, 2011 the Federal Housing Administration will be reducing the FHA Loan Limits.

The current limits in Dade, Broward, and Palm Beach counties is $417,000.  The limits for these counties will be reduced to $345,000.  This reduction will affect any loan that has not been approved by an FHA Direct Endorsed underwriter.

If you are looking for homes above this price range or even under contract and not yet approved and you are expecting to finance your home with an FHA insured loan, you will be affected by the drop in the FHA loan limit.

Please remember these are loan limits, not limits on the purchase price. Buyers can always make up the difference between the purchase price and the loan amount by increasing your down payment.