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HUD Foreclosure

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FuturePlan2
New Contributor

HUD Foreclosure

Hi guys! I have been preapproved for a USDA RD loan but I have found a HUD foreclosure (townhome with HOA) that is below my budget listed at $133k.  The address is in a RD eligible area.  Would I be able to use my RD info or would I need to have my credit pulled again for FHA approval in order to purchase? I am aware of the $100 down payment if you are seeking a FHA mortgage but wasn't sure if a FHA mortgage was required.

Message 1 of 5
4 REPLIES 4
RJA
Regular Contributor

Re: HUD Foreclosure


@FuturePlan2 wrote:

Hi guys! I have been preapproved for a USDA RD loan but I have found a HUD foreclosure (townhome with HOA) that is below my budget listed at $133k.  The address is in a RD eligible area.  Would I be able to use my RD info or would I need to have my credit pulled again for FHA approval in order to purchase? I am aware of the $100 down payment if you are seeking a FHA mortgage but wasn't sure if a FHA mortgage was required.


I believe that as long as the property is in an USDA designated area you can use it on any type of home (HUD, Homepath, etc.).  I would only go FHA as a last option over the USDA.  You won't be stuck paying MI for the life of the loan.

Message 2 of 5
FuturePlan2
New Contributor

Re: HUD Foreclosure

Thanks! I decided to pass on that place.  The previous owner owes 2 + years of back taxes and I think I would be responsible for those in addition to the HOA and monthly payment.  

Message 3 of 5
DallasLoanGuy
Super Contributor

Re: HUD Foreclosure


@FuturePlan2 wrote:

Thanks! I decided to pass on that place.  The previous owner owes 2 + years of back taxes and I think I would be responsible for those in addition to the HOA and monthly payment.  


nope.... you wouldn't be responsible for either

 

 

 

Retired Lender
Message 4 of 5
FuturePlan2
New Contributor

Re: HUD Foreclosure

I was told by my lender I would be responsible for the back taxes since it was a foreclosed unit.  Someone has a contract on it now so I've missed out if this wasn't the case Smiley Sad 

Message 5 of 5
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