FHA Loans: Are there any special financing requirements when buying a HUD home?

fha loansIn order to buy a HUD home, a prospective purchaser must be pre-approved for the property’s asking price (and required repairs) or be prepared to provide proof of funds for a cash purchase.

When financing the purchase of a HUD home, typically FHA loans are the type of mortgage used.

There are different types of FHA loans including FHA loans that are insurable, FHA loans with a repair escrow and FHA 203k loans.

FHA loans that are insured (IN)  means that the property being purchased meets the Federal Housing Administration’s minimum property standards.  These minimum standards include working heating, plumbing, electrical, roof and mechanical systems.  Properties purchased with a FHA insured loan may still need cosmetic improvement, but the mechanical systems must be in working order.  Continue reading →

Baltimore HUD Homes with Reduced Prices

 


Baltimore Homes for sale – 5510 Pioneer Dr

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$81,900
Baltimore HUD HomesSingle Family Home
Main Features
3 Bedrooms
1 Bathroom
Lot: 896 sqft
Location
5510 Pioneer Dr
Baltimore, MD 21214
USA
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Nishika Jones Nishika Jones

Urban Living Realty
(410) 952-2641
listings@urbanlivingrealty.com
http://www.TheHUDHomeList.com      

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Mortgage Interest Rates on the Rise: What’s Up with That?

So what does it mean to you when mortgage interest rates increase?

Home buyers and homeowners thinking of refinancing would like to know that they’ll pay as little interest as possible, who wouldn’t, but over the course of a 30 year loan let’s take a look at an actual example of what 1% higher interest rate means to your wallet.

Let’s take a look at your monthly payment and how mortgage interest rates affect buying power.  mortgage interest rates

If you’ve been pre-approved for a $200,000 loan at 3.5%, the monthly principal and interest payment will be approximately $898.

It’s important to note that this example is just of the principal and interest portion of your monthly payment and does not take property taxes and homeowners insurance into consideration. The total monthly payment will include the principal and interest as well as an escrow for property taxes and insurance.

But at 3.5%, the monthly principal and interest (P&I) on a $200,000 loan would be approximately $898.09. The same $200,000 with a 4.5% rate would mean a P&I payment of around $1,013. So in other words, the payment would be about $115 higher each and every month.

For some homebuyers, the higher monthly payment from a mortgage interest rate increase can ultimately affect affordability.

 

Depending on your monthly income and debt you may qualify for a less expensive house which could mean pricing yourself out of the neighborhoods that you’d like to live in.

If you are considering a move within the next six months and would like to take a look at Baltimore MD homes for sale, now is the time to begin the process and compare your options. Take a look at what the current mortgage interest rates are and how they fluctuate over the next few months. See how much the homes are listed for in the neighborhoods that you’d like to live in. What’s the average square footage, how many beds and baths do you need.

It’s never too early to get started.

Contact us at 410-952-2641 for more information about real estate prices and increasing mortgage interest rates.

HUD Home Definition

The HUD home definition is a property owned by the United States Department of Housing and Urban Development (HUD). Sometimes these properties are referred to as HUD houses, HUD homes or even HUD foreclosures.  It’s important to note that HUD does not foreclose these homes so they are not HUD foreclosures, but we will take a look at how the US Department of Housing becomes the owner of these properties.

hud home definition

The US government (HUD) acquires these properties when a borrower with an FHA mortgage is no longer able to maintain payments on their loan.  HUD takes back the title to these properties because FHA mortgages are guaranteed by the Federal Housing Administration (FHA).

So HUD homes are defined as properties financed with a FHA loan

FHA loans are available to borrowers who wish to purchase a home with an affordable low down payment.   Homeowners can also refinance their current home loans with an FHA mortgage. So by definition a property can become a HUD home even if it wasn’t originally purchased with a FHA loan since it may have been refinanced with a FHA loan. There are a number of reasons that borrowers who are either purchasing a home or refinancing would use FHA financing.

One reason a FHA loan may be advantageous is a lower down payment requirement than other loans.  But FHA loans without a 20% down payment require mortgage insurance which is paid upfront and monthly by the borrower.  Mortgage insurance does not benefit the borrower.  It is protection for the Lender in case the borrower is unable to make payments, for some reason.

When a FHA borrower is no longer able to maintain mortgage payments and the property goes into foreclosure, the lender files a mortgage insurance claim and HUD acquires the property. That is the definition of a  HUD home.

The Federal Housing Administration (FHA) only provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.

For more info on HUD homes, or to see Baltimore HUD properties contact us by phone/text at 410-952-2641 today!

Owings Mills Homes for Sale- HUD Owned


Homes For Sale In Owings Mills – 4522 Runnymeade Road



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$240,000
Single Family Home
Main Features
3 Bedrooms
1 Bathroom
1 Partial Bathroom
Lot: 1,376 sqft
Location
4522 Runnymeade Road
Owings Mills, MD 21117
USA
To get updates on open home dates and other property events, please click the “Like” button below:


Nishika Jones

Urban Living Realty
(410) 952-2641
listings@urbanlivingrealty.com
http://www.TheHUDHomeList.com

       

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HUD Homes Baltimore


Baltimore HUD Home for Sale – 5437 Hilltop Ave
 

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$49,000
HUD Homes Baltimore

Townhouse

Main Features
3 Bedrooms
1 Bathroom
Lot: 1,280 sqft
Location
5437 Hilltop Ave
Baltimore, MD 21206
HUD Homes Baltimore
USA

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Nishika Jones Nishika Jones 

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Queen Anne Village Owings Mills Local Real Estate Market

Queen Anne Village Owings Mills is a beautiful neighborhood found in the north-eastern part of Maryland just a little over an hour outside of Baltimore. The community is teaming with a robust real estate market that is constantly in motion giving both buyers and sellers a wide range of viable resources for their real estate needs. Queen Anne Village Owings Mills is comprised of a large variety of townhouses, condos, homes and more with price tags that are across the board. Homes in the area can go for anywhere between $50,000 up to several million dollars, but came out to an average selling price of about $379,288 for the month of May 2012.      queen anne village owings mills

The real estate market in Queen Anne Village Owings Mills is like any other market in America, given to highs and lows based upon the current needs of both buyers and sellers. The past year Queen Anne Village Owings Mills saw a wide range of homes being bought and sold in the Queen Anne area such as a beautiful three bedroom, 2 and a ½ bath townhouse on Englefield Square that sold for $175,000 in the beginning of 2012. The townhouse was built in 1981 and featured high-end hardwood floors, an eat-in kitchen nook, three floors with a spacious family room on the lower level and a large backyard with a gorgeous wooded area attached.

Currently Queen Anne Village Owings Mills has a number of homes on the market such as a 3 bedroom, 2 and a ½ bath home along Spectator Lane that features a fireplace, three levels with a completely finished lower level and a walkout deck off the back of the house that overlooks the private backyard below. The home was built in 1986 and is currently listed at a very reasonable price of $179,900.

queen anne villageThe beautiful area of Queen Anne Village Owings Mills is a picturesque locale that offers residents a close knit community, nearby shopping and public transportation as well as a short jaunt across Chesapeake Bay to the Baltimore metropolitan area. Queen Anne Village Owings Mills is known for its outstanding homes that are a wonderful mix of old and new, giving the residents a wide variety of homes to choose from whether they are looking for modern and sleek condos or traditional colonial houses with sprawling backyards for a large family.

 

The Queen Anne Village Owings Mills real estate market is always changing, making it a perfect community to snap up a stunning house for the right price and make it into a family home. Call us at 410-952-2641 to see homes currently for sale in Queen Anne Village Owings Mills!

What is Real Estate in Baltimore Like, Right Now?

Real estate in Baltimore is ever changing, month-to-month and year-to-year prices and availability can change in a matter of days based on the current economic market. Because of the city’s large size, there is always going to be a wide selection of houses for sale in a large range of prices from anywhere as low as $30,000-50,000 to an upper high of about $5,000,000+. The variety available is truly astounding, but on average the real estate in Baltimore settles at a more manageable median price of about $204,595 gauged between April 2011 and April 2012.  real estate in baltimore

Baltimore is filled with homes for every need, whether you are a single person looking for a starter home that needs a little TLC or a large family looking for a 4 bedroom home between $200,000 and $299,999. Real estate in Baltimore can meet the needs of anyone if you look hard enough and based upon what the current market is like, you might find your housing needs in excess with a wealth of options to choose from.

In April of 2012 the real estate in Baltimore had an excellent month, selling a wide variety of homes in many different architectural styles, features and prices. The category with highest change in average price in April was 4 bedroom homes with an attached garage/parking space; the average selling price was $206,482, which is a 12.22% change in the yearly average (April 20111 – April 2012) of $183,997. The category of real estate in Baltimore with the lowest change in average price in April were homes with 1-2 bedrooms with a detached garage/parking space; the average selling price was $157,473, a -4.93% change in the yearly average of $165,644 for the category.

The real estate in Baltimore has always been eclectic in its variety with a broad range of homes available to meet the needs of its residents. The Baltimore real estate market is ripe with houses that are just waiting for the right buyer to call home and the selling prices show that whether you are a home owner looking to sell or a buyer looking to purchase a new home, the time is right to snap up a good property while it is still available before the price attracts other buyers and you miss out on a wonderful home for your family.

*Statistics Provided by RealEstate Business Intelligence’s Monthly Market Statistics (Detailed Report) for the month of April 2012.

What do you think of real estate in Baltimore now, as compared to a year ago?