Transcription
What's going on YouTube? Welcome to my channel, MoneyMoves with Kay. I am Kay, and today we're going to talk about a website, a government website, that allows you to buy foreclosed homes for $100 down. Yes, $100 down. Without further ado, let's get it started.
So, this is the website, and I'll put it on the screen so you can see. The website is called hudhomestore.gov. Once again, and it's here, it's located here as well. hudhomestore.gov. That is the website's name. So, let's go ahead and get started.
What I wanted to show you is some things that most folks may not cover, okay? So, make sure you rock with me. Make sure you stay towards the end so I can tell you how you even qualify for something like this. Most people think you may have to have all cash up front to buy foreclosed home. That's not true. You can get funding or financing for a foreclosed home as well.
So, let's get it. So, this is the website, and what you do, depending on where you are located or where you are interested in purchasing, this is the map, okay? So, this is the map map of the United States, and it has each and every state on here. So, it's your choice to select a state. For my example purposes, I want to choose Texas just as an example. Of course, you can choose anyone that you want to, okay?
So, this is the actual website. So, um what I want to do is show you some filters that or a filter that I use. So, depending on your budget, right? So, even though you only have to put $100 down, you still want to make sure that your monthly mortgage payment is something that you can handle, okay? And a bank will not lend to you based on something you can't necessarily handle. But, even if they approve you for $500,000 in my example, and you say, "Hey, Kay, you know, that's 500K. I don't Although I got qualified for $500,000, I don't want a $500,000 mortgage," meaning monthly, a monthly a high monthly payment. So, you can go up here and uh play with the actual amount that you want to spend, right? So, I put $200,000 as my max, of course. That's just me putting out a random example. You can put in anything, okay?
I'm going to point to a house that I've already investigated and looked at, and I want to show you some features on this website that's super duper cool, okay? Um, is it on here? Yes, it is. Here it is. This is the home that I want to highlight. Now, you do have to go through a realtor, just like you would any other home for this particular website, okay? And it gives you all this information on the next page. Make sure you stick with me.
Also, make sure you check out my tax auction blueprint. It is on sale, all right? Tax auction blueprint is on sale. Make sure you check it out because after, I don't know, a couple days or so, it will go back up or increase. So, tax auction blueprint, check it out. But, for this particular website, >> [snorts] >> you are here, so I want to check out this home right here. And this home has, or it's listed for $180,000. And 1 day, 11 hours, 18, uh, minutes remaining to bid. So, it is a bidding process, so keep that in mind, okay?
Now, the cool thing about this website is that, first of all, it is government, a government website. Secondly, it gives you a lot of information to ease the worry that you may have when you're dealing with a foreclosed home, such as a property report, okay? So, let me scroll down, and I want to show you something really, really cool. These are all things that the I'm assuming, uh, the bank has identified as either they have or they don't, right? So, revitalize area, national registry, opportunity zone, historic district, FEMA flood zone, airport zone. So, these are all things that don't impact this home. If it's checked with a green check, then it does impact. I've seen homes on this particular website where FEMA flood zone was checked. Meaning that that particular home would be in a flood zone, but this one is safe from a flood zone. But of course, you always do your due diligence regardless of what they say, right? So, that's how we operate on this channel.
One thing I wanted to point to is under listing information. So much information. Here we go. So, it says listing period extended. All right, so this right here allows you to identify that this particular home is FHA $100 down eligible, which is the program that I'm talking about. I'll get to the qualifications in just a second about the program itself. But follow me, work with me, stay with me, all right? So, 203K eligible, meaning that you can buy the home, but also receive funds to fix up the home if needed, okay? So, it's both FHA $100 down eligible and also 203K eligible as well.
Now, this is the part where most um content creators will not explain, and I wanted to break this down even further because this will save you money and allow you to really search for a really good deal, okay? So, it says IN in short. Let's check out what that means. There are three abbreviations on this particular website that I want you to pay attention to when you are looking through the website. Very briefly, I'm going to go over this very quickly so you get the gist of it. I don't have to go in depth about what it is. IN means it's insurable, okay? Meaning that it's a lower risk, and it's not too much going on with the home. You might need some new paint, cosmetic, right? For the most part. Um examples may be home needs paint, cleaning, or minor cosmetic updates, but is otherwise move-in ready, okay?
Another thing or another abbreviation you want to um check out, and I see this a lot on this website, IE. IE means insurable with escrow. What does that mean? Well, it's meaning that it could have some missing handrails, so some minor issues, a little bit um more moderate, as you can see, for the risk level, but a little bit more damage to the property, okay? So, you will have to take that into consideration. So, missing handrails, broken windows, damaged flooring, minor roof or havoc repairs, etc. So, keep that in mind if you see IE, insurable with escrow. And what that basically means is here, says repairs are required, but not severe enough to make the property unfinanceable with FHA. So, keep that in mind. It still can be financed with FHA. And by the way, you do And I'll get to that to that in just a second, but you do need to ensure that you qualify for an FHA loan. It's the same thing. Once you qualify for an FHA loan, you'll be good to go with being eligible for the $100 down payment program, okay?
Now, UI is uninsurable, meaning it's not insurable, right? So, the risk level is high. I will admit, from the properties that I've seen, I have not yet seen UI on this particular website, but keep that in mind. These repairs may need roof replacement, okay? Major plumbing issues, extensive electrical problems, foundation concerns, severe water damage, or missing systems. So, if I were to buy, right? This is me, my personal experience. In the event that I were to use this program, I would try to stay in this region here, IN and IE. Not saying, you know, totally disregard this, but as far as funds are concerned with a close to moving ready property, I would stay here. Now, a lot of these properties are fixer-uppers. That's good to know because you want to see if you can add maybe some some value to the property as well. So, keep that in mind for long-term. But, insurable is definitely That's A plus. And here, you get in the realm of it needs some repairs, but it was still good enough to actually proceed with FHA funding, okay? So, keep that in mind. I wanted to briefly go over that.
Now, once you scroll all the way down, I'm back on the website. Once you scroll all the way down, you'll see addendums, okay? Now, this I want to click on it because it automatically downloads to my computer and I'm trying to preserve my storage, all right? So, if you click where it says property condition report, it will allow you to see some notes from the actual inspector, right? That, you know, maybe the havoc isn't working condition, the water turns on, the toilet flushes, etc. Gives you a little bit more information about the property. And of course, when you scroll all the way down, you can have some contact information to reach out to those folks in order to see how to bid and any other information or questions you may have, you contact these folks, okay?
I wanted to run down this website, but I also want to run down, how do you qualify? Okay, tell me more. How in the world do you qualify for this program? So, let's get it. Let's go back for a second. This is the program uh a gist of the program. So, it's the HUD $100 down uh payment program. And it allows eligible buyers to purchase certain HUD-owned foreclosure homes with just $100 down instead of the traditional 3.5% or more, really, but minimum FHA requires 3.5% down. So, instead of paying 3.5% down of a home, you're paying $100 down. That's pretty dope. That's really cool, okay? Um of course, with any program, there's pros and cons, but I just want to give you an overall gist, let you do your own due diligence, that is your responsibility, for other pros and cons so you can weigh them yourself to make it more personal for yourself, okay? So, this is just giving an example of what you may pay as far as down payment if if you just went the traditional FHA route, but this program, my friends, is only $100 down. I love it.
Other costs, though, that you will have to consider when you're looking into a program like this is although you're paying $100 down, you will have to pay earnest money, right? To pretty much show the actual buyer or that that not the buyer in this case, but to show that you're serious and, you know, kind of reserve the property for yourself. You also have to keep in mind that you have to get a home inspection. And you also have to keep in mind that you will be responsible for closing costs. Closing costs typically range from 2 to 5%. Just varies depending on where you're located and the law firm or title um firm that you're using, right? So, keep that in mind. So, keep those expenses in mind, too. But as far as folks not having enough money for a down payment to get into a home, this may be your opportunity. And also, um yeah, just keep this program in mind. I was going to say something else, but I'll save it for another video, all right?
So, here here are some of the qualifications. Off bat, most people say, "K, what is the credit score that I need to get into this home?" Okay? Credit score is tricky, but I always tell people to be if you can be in the 650 and above, that's always great. But there are some, you know, um workarounds. A lot of a lot of places do accept 580 or better, but just try to be in the 600 club and it'll assure you that you don't have to You can go in with with a lot more confidence when you get your pre-approval, okay? So, keep that in mind. But um it does have to be your primary residence, so you do have to stay there, okay? Um It says, "Live in the home as your primary residence." I just said that. "Qualify for a regular FHA loan." You have to have verifiable income, acceptable debt-to-income ratio, employment history, okay? Credit qualification under FHA guidelines. Make sure you check those guidelines. It's a quick Google search to check the guidelines, but again, it says here, "Most lenders require at least a 580 credit score for the 100 down option, but of course to have that confidence, you want to be 600 club or better, right? Of course, better is better. So, keep that in mind. Um but also be prepared to pay for those other expenses such as the appraisal, the closing costs, home inspection, etc. All right?
That is the end of my video. I truly wanted to bring you this website. Once again, that website is called HUD homestore.gov, where you can buy a home for $100 down, right? And when I looked at this website, they have some really Let's Let's peruse real quick. So, if you made it this far in the video, you an all-star. I appreciate you. Um so, let's peruse some of these pictures so you can kind of see what you getting. All right? This is pretty cool. So, not all the properties look like this, but this one is the reason why I pointed this one out because it's really nice, right? It's a really nice property. And really nice. Like I love the backsplash. I love the flooring. I love the white cabinetry. Although, if you have children or you know, you're prone to have accidents, you know, that could be, you know, crazy for you, right? Shows dirt very easily, but it looks very nice, very very clean. For $188,000, it's eligible for a $100 down payment. If there is a will, there's a way. These programs exist. You just have to check them out, all right? So, I just want to show you the pictures.
If you made it this far in the video, thank you so very much. Down in the comment section, put I made it. It allows me to know you made it this far in the video. I naturally do appreciate it. Until next time, guys, you stay blessed. Peace.