How To Buy a HUD Home in Colorado Springs

Table of Content

• Are There Benefits?
• Colorado down payment assistance programs
• Does Colorado have a first time home buyer program?
• Home inspections in Colorado

Your HUD-approved housing counseling agency can be available every step of the way, with information and answers regarding every step in the purchase of your first home. Consulting with your housing counselor, you'll have the knowledge - and confidence - to help you make the right moves on your way to that big move. In order to use the $100 program you MUST use FHA financing and offer FULL asking price for the home. Many times HUD homes are going for more than asking price, so often buyers are offering over to secure the winning bid.

This is because you have to research the HUD program in general (which, if you’re reading this, you’ve already started! Yay!) and the specific house that you want to buy. Before making an offer on a HUD home, the buyer must be pre-approved for the necessary loan amount. Prior to submitting an offer on a HUD home, the lender must take an official loan application, approve supporting documents, and issue a preliminary loan commitment. Our team of industry-leading researchers are committed to making homeownership more accessible by educating buyers through guides like this one.

Are There Benefits?

Is it harder or easier to buy a HUD home than other types of property? HUD, HHS partner to create housing and services resource center for affordable, accessible housing and supportive services. The purchase of a HUD can only be completed through a licensed Realtor. In fact, there are no restrictions on the kind of person who can purchase one. Anyone who has enough for an all-cash offer, or who can qualify for a loan can buy one.

Mortgage insurance costs around 1% of your mortgage balance annually. However, rates vary based on your down payment and credit score. Typically, your mortgage insurance payment is added to your mortgage payment each month. Typically, mortgage lenders in Colorado want you to contribute 20% of the purchase price as a down payment. That would be $115,500 for a $577,500 home — the typical home value in Colorado.

Colorado down payment assistance programs

You may have an opportunity after this step to renegotiate the terms of your contract with the seller if something unexpected pops up. Currently, in Colorado, homes stay on the market for 61 days before going under contract. During busier months, homes get snatched up more quickly than others.

Things tend to move quickly when you purchase a HUD foreclosure. Typically, the waiting period before investors can snatch up a property is 30 days after the initial listing. After the initial bidding period, HUD will place the winning bid on the website the following day and send an email to the real estate agent. Once you receive notification, your agent must submit your contract package do HUD within 48 hours. Most closings will occur days after your winning bid notification.

Does Colorado have a first time home buyer program?

Colorado Housing Assistance Corporation’s Down Payment Assistance Program is available for first-time buyers with low-to-moderate income. The assistance is given to participants as a second mortgage which needs to be paid monthly. This is what you've been waiting for - but there's a lot to do before you sign on the dotted line.

Only a few states including Colorado can provide FHA $100 HUD Home Program to its residence. Clever Real Estate is a free agent-matching service that has helped more than 82,000 people buy and sell homes. We partner with over 2,700 top-performing agents nationwide at national brokers including Keller Williams, RE/MAX, Century 21, and more. We also help buyers save thousands with cash back after closing — no strings attached.

This program provides down payment assistance for up to 4% of the initial mortgage loan amount. Assistance comes as a second mortgage that acquires no interest and requires no monthly payments until the borrower pays off or refinances their home. Government backed loans, like VA and FHA loans, allow you to contribute 0% and 3.5% of your home's purchase price respectively.

Your real estate agent can also send you a list of HUD homes in specific areas and price ranges that meet your criteria. If you are concerned that since HUD properties belong to the government that researching them might be hard, you are actually in luck. The HUD website uses fairly accessible language and features many helpful links and articles. The most important bit is the information on there is the state-specific programs that supplement the federal home-buying assistance programs. This is because these can really vary from state to state, so it’s easier to have them all in one place.

How do you purchase a HUD home?

Homes are offered first to owner occupants for the first 10 days listed. After that initial time frame, HUD will examine bids for one that is acceptable . If there is not an acceptable bid, then at that time HUD will open the bidding process to investors and non/owner occupants.

Your HUD-approved housing counselor will make sure you're totally prepared for the big day. Find AgentsIf you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent. Most HUD-approved properties are sold “as is.” This means that when buying the home, what you see if what you get. The HUD is not usually willing to make any major repairs to the property.