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HUD Loans in Grand Prairie, Texas

HUD

HUD has a large inventory of homes in every state that they have foreclosed on resulting in HUD owning these homes. These are all 1 – 4 unit residential properties.

Started in 1965, HUD is a department of the United States federal government. Its full name is The Department of Housing and Urban Development. HUD has many roles. One of the main purposes of HUD is to create more quality and affordable housing in America. In addition, HUD’s mission is to prevent housing discrimination based on race, sex, color, nationality, and religion through the fair housing act. Also, HUD facilitates rent subsidies for very low income individuals and families through Section 8 Vouchers, and Public Housing Programs. Natural disaster relief through FEMA is another of HUD’s roles. HUD is also well known for overseeing FHA loans for homeowners, with low rate high loan to value loans. The purpose of this division is to give more Americans the ability to own a home. HUD does not make the loans, but rather guarantees the mortgage making it possible for FHA lenders to take a risk that they would not otherwise take. On the mortgage side, HUD also oversees an apartment building program enabling investors of commercial real estate to build, purchase and refinance apartment complexes. These multifamily HUD loans have very low 30 to 40 year fixed rates. To find out more about all of HUD’s programs you can go to their website: https://www.hud.gov

 

Buying a HUD Foreclosed Home

HUD has a large inventory of homes in every state that they have foreclosed on resulting in HUD owning these homes. These are all 1 – 4 unit residential properties. You can usually get these below their fair market value as they are offered for sale to recover the loss of the defaulted loan. These homes are first offered to owner occupied buyers, but if they are not sold within, a reasonable amount of time can be offered for sale to investors. 

To buy a HUD foreclosed home you can get prequalified by a bank or mortgage broker in the same way you would to purchase any home. You can apply for a HUD insured FHA loan if you like through a mortgage broker. Quite often, these homes are in need of repair so getting a property condition report is very helpful. HUD sells these home in as is condition so be prepared to fork out some additional cash to bring the property into good condition. You can use a HUD insured FHA 203(k) Loan if you want to include the cost of repairs or remodeling in the loan. To search for a FHA lender you can go to this website: https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist

For more info on how to buy a HUD foreclosed home go to this website:

https://www.hud.gov/program_offices/housing/sfh/reo/reobuyfaq

To find a HUD foreclosed home to buy in your state go to this website:

https://www.hudhomestore.com/Home/Index.aspx

 

HUD Section 8 Housing Voucher Program

Section 8 Housing Vouchers can be used to subsidize rents for very low-income individuals and families. These vouchers can be used for single-family residential rental homes and apartments. Also known aas Housing Choice Vouchers, they are paid for by HUD, but administered by local Housing Agencies. Once these vouchers are obtained, the low-income family can choose a rental unit of their choice that accepts Section 8 Vouchers. These rental units will first have to be approved by the housing authority for being safe, sanitary, and in good condition. 

HUD on the federal level sets income limits that determine eligibility for this program. HUD keeps current data on market rents in all submarkets in America. From this data base they set income limits based on medium income in each sub-market. Many low income seniors living solely on Social Security benefits depend on this program under HUD Section 202. Also, many disabled citizens rely on housing vouchers to pay their rent under HUD Section 811.

To locate a Housing Agency near you where you can apply for a Section 8 Voucher:https://resources.hud.gov/(link is external)

To find out  more about the HUD Section 8 Choice Voucher Program:

https://www.hud.gov/topics/housing_choice_voucher_program_section_8

 

HUD Public Housing Program

HUD created the Public Housing Program to provide safe, clean, good condition housing for low income families. The housing can be in anything from a single family home to an entire large apartment building of 100 units or more where all the rents are subsidized.

You must be a US Citizen, Resident Alien or have approved immigration status, and have good rental references to apply for HUD Public Housing. Your rent will be based on your annual verified income.  For more information:

https://www.benefits.gov/benefits/benefit-details/863

 

HUD FHA Apartment/Multifamily Loans

223(f) and 221(d)4

This is the very best loan program in America for new construction, substantial rehabilitation, purchasing, or refinancing apartment buildings of 5 units or more. HUD Multifamily loans are unbeatable in that they have the lowest long term fixed rates – fixed for 30 to 40 years and have a 30 to 40 year amortization. Furthermore, these loans are non-recourse not requiring a personal guarantee from the owners or developers on the mortgage.

It is an inaccurate concept that HUD only supports financing on low income or affordable apartment complexes. About 90% of all HUD Multifamily/Apartment building loans are on market rent properties. 

HUD/FHA apartment loan interest are very low because HUD guarantees these loans with mortgage insurance. The issuance of mortgage insurance allows these loans to be sold as Gennie Mae (GNMA) bonds on Wall Street. These bonds carry the full faith and credit of the United States Government which makes them very attractive to low risk investors both nationally and internationally. 

Apartment Loan Store has specialized in HUD/FHA apartment loans since 1999 in all 50 states. Call one of our financing specialists to find out more about the program at 503-376-7303.

For more info and loan guidelines on HUD Apartment Loans go to:

https://apartmentloanstore.com/loan-product/hud-loans

About the Grand-Prairie, Texas Real-Estate Market

Grand Prairie, Texas has a house median value of $190,297. The worth of houses in Grand Prairie have increased a significantly in the last year, at 13.5 percent. There is a prediction for Grand Prairie houses to increase in the next year by 6.3 percent.

Grand Prairie has a per square foot list cost median of $108. Dallas-Fort Worth metro has a higher per square foot list cost median of $136. For Grand Prairie, the current list price for houses is $235,000. Homes sold for a median of $216,200 in Grand Prarie.

In this market, the median cost for rentals is $1,600. Dallas-Fort Worth’s metro area's median price for rentals is $1,675.

In the following few years, the number of foreclosures will have an impact on the value of houses. The city of Grand Prairie has a relatively low foreclosure rate of 0.5 houses being foreclosed for every 10,000 houses. The metro area of Dallas-Fort Worth has even a lower foreclosure rate of 0.4. The US foreclosure rate is quite a bit higher at 1.6 homes being foreclosed for every 10,000.

1.9 percent of Grand Prairie homeowners are in the state of mortgage delinquency. The nation has a lower mortgage delinquency rate of 1.6.

The 2008 recession had a big impact economically on our nation. One of the consequences was that the value of houses dropped greater than 20 percent in the nation. This had the result of many owners of houses currently being underwater concerning the mortgages they have on their homes.

Being underwater means that the owner of the house owes a greater amount of money than the market value of the house. 4.6 percent of homeowners in Grand Prarie are underwater on their mortgages. The metro area of Dallas-Fort Worth has 4.4 percent of homes underwater.

Grand Prairie has new development coming to it for commercial real estate. As a result of a new service road, a developer bought a site of 12.9 acres. The plans call for commercial development as well as retail pad site development. Construction has been in process concerning service roads of the south and north Tom Landry Freeway on Belt Line Road in Grand Prairie. It is believed that putting the new service roads in brings opportunity for commercial development and retail pad site development.