The sun is setting on HUD Discounts for Ohio's buyers on February 12. (photo by Charlie Balch and used with permission)
The news quietly broke on Monday morning, so quietly that very few saw it, until the word began reverberating through Twitter and the rest of re.net.
The Housing and Urban Development (HUD) office announced on Monday that effective February 12, 2010, the incentives to purchase an Ohio HUD property will be going away. According to National Home Management Solutions, the company that services HUD listings in Ohio, the rule is that HUD must sign the contract before February 12 for these incentives to still be in effect. (If you currently have a home in contract and are closing after February 12, the original items are still available to you.)
The incentives are:
- The $100 down payment incentive which allows home buyers to get into a HUD-owned home for just a $100 down payment when using FHA financing.
- The $2,500 sales allowance for closing costs. Combined with the willingness of HUD to give up to three percent (3%) of the price for closing costs this incentive allows many buyers to essentialy get into the home for only the $100 down payment.
Both of these will be disappearing as of February 12, so if you are looking for a great way to get into the Central Ohio real estate market you better hurry. After February 12, all these homes will be subject to the traditional FHA-financing restrictions for down payment.
