What State and Federal Programs have to offer?
There are a variety of programs available to investors. Although requirements and qualifications vary from state to state, it would be smart to look into what is available in your particular state. The government is always willing to help, individuals that are willing to invest and ultimately stimulate the economy. Why not take advantage of the programs that have been set up just for that reason?
There are several programs to consider. For example, Housing and Urban Development (HUD) properties offer a variety of opportunities. Even though owner occupants are often given first priority in regards to the property, they do offer a possible prospective to an interested buyer. They are typically financed through conventional mortgage lenders or private lenders, and for more information, they can be contacted via telephone at 1.800.767.4483 or online.
Federal Housing Authority (FHA) is another source to look into. The FHA does not officially grant loans itself but it does have the authority to insure mortgage loans made by private lenders but it does offer an insurance policy that works with approved lenders and covers the premium of the amount pad by the borrower. These loans are more liberal than an average. They are assumable, which means that the buyer can take over the existing loan with the original terms that were agreed upon by the borrower without going through another process of loan approval. These loans also offer the advantage of a lower down payment amount.
The Department of Veterans Affairs buys and assumes ownership of a property when loan goes into default and the property is usually sold at auction. Look into OCWEN properties are marketed through Ocwen Federal Bank FSB in West Palm Beach, Florida. Also consider Vendee Financing programs. They are available to veterans and non-veterans alike and less fees are applicable. Typically, less out of pocket money is needed than more traditional loans and down payment amounts are also usually less. For more information, opportunities, and benefits, make sure to check the website.
Small Business Administration (SBA) offer grant loans or guarantee loans from other lenders. It generally focuses more on commercial properties, but should still be considered as a possibility. Federal Deposit Insurance Corporation (FDIC) and Federal Savings and Loan Insurance Corporation (FDIC) collect and set aside insurance premiums for banks that are members in order to protect their depositors from any loss.
The federal government pays back any money that is lost by depositors if the FDIC or the FDLIC fails. For more information, do not hesitate to check out their website at www.fdic.gov/buying/owned/index.html. Federal National Mortgage Association (Fannie Mae) is the largest source of financing for home mortgages. The properties they own are sold by local real estate agents and they can be accessed online.
As for Federal Home Loan Mortgage Corporation (FDIC) properties, they purchase residential mortgages from lending institutions. The properties they own are usually sold by local real estate agents which offer special financing programs such as the Home Steps Program which can be accessed online.
The Internal Revenue Service (IRS) can actually be considered a friend. It offers properties to collect on overdue and unpaid taxes owed by property owners. Although it does not offer financing assistance, property owners are given a one hundred twenty day redemption period. More information on what they have to offer can be accessed at www.treas.gov/auctions/treasury/rp.
Investors often try to avoid working with the government, but in reality it has a lot to offer in the field of real estate. Learning what programs are available and taking advantage of the ones that may me available can be both cost effective and time efficient. Knowing what is out there, taking advantage of it, and putting it to good use is a plan for success.