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How to Buy Hud Homes in Tucson

HUD Homes are homes that have been acquired by the United States Government. These homes can in most cases be financed by FHA loans. Currently FHA requires a 3.5% down payment. In Pima County in 2011 there are multiple down payment assistance programs to help first time buyers and those buyers that have not owned a home in the last 2 years. One program offered by Family Housing resources allows first time buyers that are income qualified to buy a home with only $1000.00 down. In addition the City of Tucson has a Bond program that allows purchasers to get a 3.75% interest rate as of Oct 1 , 2011.

HUD homes are inspected by the seller and a report is provided to the buyer. HUD homes in Tucson and Pima county are purchased by a bid over the internet. Buyers need to use a licensed Real Estate agent and a real estate brokerage company that is certified to sell HUD homes. The paperwork and bidding system is very unique and it is best to find an agent that has the background and expertise to process a HUD home. HUD homes can be great buys because the seller reduces the price on a schedule until the home sells. By tracking the price and understanding the marketing process of HUD homes one can identify excellent purchases.

HUD homes also can be great buys for investors. HUD gives owner occupants the first right to buy the home for the first 30 days on the market. After 30 days all buyers may place a bid on a HUD home. Some HUD homes are not finance able by FHA loans and due to repairs owner occupants may not be interested in these homes. These homes can be purchased by investors often at greatly reduced prices. The Distressed home can be renovated, then rented or often times sold for a profit.

A great source of Bank and distressed real estate plus HUD homes in Tucson AZ can be found at www.TucsonGrants.com

services offered by Biel Team.

Prices Crash-Savvy Investors Strike

Its in the news, prices have crashed on Bank owned properties in Tucson and Phoenix. Newer homes are now priced in many cases 50% below replacement cost. Its not uncommon to find a home that would cost $180,000 to replace in today’s construction cost for as lows $90,000. Savvy investors are purchasing newer homes for long term holds. The game plan is to hold the property for a minimum of 5 years and ideally 10 years. When the housing market returns and inflation escalates there will be dramatic equities in these home after a decade. Newer homes can be purchased in Tucson for as low as $60,000 featuring 1300sqft , central AC and garage. Some of these homes need fix-up though in many cases the renovation is under $7,000 to have the house in like new condition. The inventories of available homes in this price range changes weekly. Its is not uncommon to have as many as 7 to 14 bids on a below market bank reo property. Purchasers are bidding the price up sometimes $10,000 over the asking price.

The increase of foreclosures and a short moratorium on foreclosures insures there will be a steady stream of opportunities for investors in the near future. The key to this market niche is to identify homes that are in high demand and will rent quickly in this market. For example a 4 bedroom home will rent much faster than a 3 bedroom home. Newer homes close to amenities are always more attractive than older homes without amenities.

Investors can see the daily opportunities that hit the market. Hud homes and Bank Reo Properties are the best opportunities to search for substantial equity on homes.

REO Bank Owned Homes List

By watching the daily inventory and tracking Bank owned property one can find these unique opportunities.