Advantages of Buying a HUD Home.
John interviews Marcia Toms on the advantages of buying a HUD home.
JOHN: Hey, guys. John Jones here with another edition of Tuesday Morning Coffee. It’s with great honor and privilege I have today. We’re right here live in Atlanta, and we’re at the Pemco headquarters. Pemco is one of the large asset managers, especially for HUD homes in our area and we work with them daily. But I have Marcia Toms with us, and she is the marketing outreach director. She’s actually a Tennessee girl. She grew up in Knoxville, went to UT. Go Vols. So that’s why, you know, we hit it off.
But anyway, we’ve been talking a lot today, and Marcia, if you could tell the people out there whether it’s an agent or whether it’s a buyer, let’s say we’re speaking to buyers or potential buyers out there about buying a HUD home, what are some advantages to that? Why is it advantageous for someone to even look at a HUD home?
MARCIA: Well, one of the advantages right now is that we offer $100 down. And I don’t think there’s anywhere that you can find a property for $100 down. Also, we have great pricing. A lot of great pricing out there right now. You can find a lot of great buys. We also have what is known as the “Good Neighbor Next Door Program” where we offer 50% off to teachers, the policemen, and EMTs. A lot of people don’t understand about that program.
JOHN: We’ll stop there for a second. Good Neighbor Program, who would qualify for that?
MARCIA: Teachers, EMTs, and policemen.
JOHN: All right. So they can get perhaps a 50% discount on the appraised value of that home. Is that correct?
MARCIA: Absolutely. It has to be in a revitalization area, but the offer is out there. It’s a great program. I suggest you get with an agent to hear more about it and understand it. Also, the process. A lot of people think that buying a HUD home is going to be a long drawn out process that’s hard. It’s actually really simple, but you do have to have a HUD-approved agent to walk you through the process.
JOHN: Okay. And our experience has been from the date someone puts a contract, I mean, we’re closing within 45 days, sometimes maybe even a few days before that. So it doesn’t take that long. It’s basically like a traditional sale as far as contract to closing. Is that what you guys are seeing here?
MARCIA: Yes, absolutely, absolutely. And also, if you see some that need a little tender love and care, we have a 203K loan. FHA offers that. They do it all day long.
JOHN: That’s right. We have a lot of local lenders in Middle Tennessee that can help you with that loan. It’s a good opportunity to go in and buy something and maybe even get a little bit better deal on it than the already great deals.
JOHN: Just to put a little bit of elbow grease into it. So that’s awesome. Thank you so much for having us here today and sharing with us. You’ve been so helpful, and we appreciate you so much.
MARCIA: Thank you.
JOHN: All right. Thanks.