Selling HUD home in classifieds? (6%, agent, insurance, rent)

[floridadreamer]

So I was looking for a home to rent the Indianapolis area because we are relocating soon. I came across several ads saying something like "3bd 2ba newer HUD home, $850 total payment, 6% and $100 down.

Now does this sounds like a scam to you?

[themaster]

Doesn't exactly sound like a scam.. what I know about hud homes is that you can 1/2 the value if your police officer or teacher.. time to do some public service

[sunny57]

Originally Posted by floridadreamer

So I was looking for a home to rent the Indianapolis area because we are relocating soon. I came across several ads saying something like "3bd 2ba newer HUD home, $850 total payment, 6% and $100 down.

Now does this sounds like a scam to you?

Sounds like they're generalizing....no way to know if all buyers will qualify for a 6% loan. Does the total $850.00 payment cover; Principal, Interest, Taxes and Insurance or Principal & Interest only? I've heard HUD is offering some sort of $100 down payment program right now...so that part is true. Used to be if you purchase a HUD home and obtained FHA financing.... you could keep your out of pocket expenses close to 3%. I'm a bit rusty with HUD home as I haven't sold one in sometime. Call the agent & see ... no harm... no foul....Sunny

[Goodpasture]

When you mention credit terms you have to disclose in most states. Any Realtor signed up with HUD can advertise the houses for sale, but it is not an exclusive right......any Realtor signed up with HUD can sell it. I think the only thing that can be criticized is the terms being offered. It sounds like 6% interest, $100.00 down, and a payment of $850 is guaranteed, and it isn't unless the Realtor has sources of funding that no one else has.