HUD Foreclosure Incentives In California

There are some great programs for buyers looking for houses in California that they may not normally consider. Foreclosed homes aren't the only great deals out there and many regular bank owned homes don't have programs that are as good as some incentives offered by HUD.

$100 down payment.
If a buyer purchases a HUD home, they can pay as little as $100 down for most properties when using an FHA loan. This incentive is good for home occupant purchasers only and is not available to anyone receiving the Good Neighbor Next Door incentive. One small catch to this incentive is that if the buyer bids over the asking price, they will have to pay the difference between what the listing price was and what the bid amount was.

$1,000 allowance at the close of escrow.
Owner occupants can receive an allowance of $1,000 at the close of escrow by purchasing a property at the full asking price. This incentive allows buyers to use various forms of financing and still be eligable for this program. Purchasers can buying down their loan rate, or get a check cut at the end of escrow. However, the $1,000 incentive cannot be used towards the down payment of a property, nor any closing costs.

The good neighbor next door program.
HUD offers teachers, police officers, fire fighters and emergency medical technicians the opportunity to get a home at a 50% discount on a property. Those who purchase a home through the this program must live in the home for 36 months as their sole residence. Only homes located in the revitalization area qualify to be sold in the Good Neighbor Next Door program.

Even if you don't qualify for an incentive, HUD has some very nice deals on properties that should not be avoided. The main difference between a regular foreclosure and a HUD foreclosure is that you place a bid for HUD, where you put in an "offer" for regular listings.