HUDPEMCO – PROGRAM INFORMATION BUYER SELECT CLOSING AGENT PILOT PROGRAM
| PROGRAM INFO: (1) Buyers get to choose their own closing agent. (2) Buyer Select Closing fees is a buyer expense. (3) HUD will pay only a portion of the closing fees, if the buyer includes closing costs on line 5 of the sales contract at the time of bid submission and there are sufficient funds remaining to allow for this fee to be paid. If there are no closing costs included in the bid, the buyer will be required to pay all settlement and closing fees. (4) At the time of bid submission, the selling agent is required to complete the Buyer Select addendum providing PEMCO with the name and contact of the selected escrow company. (5) The earnest money payee and delivery will vary based on geographic area, refer to the earnest money guidelines for complete instructions. | ||
HUD Region | Designated Counties/States | Effective beginning with contracts executed on: |
Santa Ana HOC | Southern California: Orange, San Diego, Imperial, Riverside, Los Angeles, Santa Barbara, Ventura, San Bernardino | 3/8/2013 |
Santa Ana HOC | Oregon | 1/22/2013 |
Santa Ana HOC | Washington State | 2/27/2013 |
Denver HOC | Kansas | 3/15/2013 |
Denver HOC | North Texas: Andrews, Armstrong, Bailey, Borden, Brewster, Briscoe, Carson, Castro, Childress, Cochran, Collingsworth, Cottle, Crane, Crosby, Culberson, Dallam, Dawson, Deaf Smith, Dickens, Donley, Ector, El Paso, Fisher, Floyd, Gaines, Garza, Glasscock, Gray, Hale, Hall, Hansford, Hartley, Hemphill, Hockley, Howard, Hudspeth, Hutchinson, Jeff Davis, Kent, King, Lamb, Lipscomb, Loving, Lubbock, Lynn, Martin, Midland, Mitchell, Moore, Motley, Nolan, Ochiltree, Oldham, Parmer, Pecos, Potter, Presidio, Randall, Reeves, Roberts, Scurry, Sherman, Stonewall, Swisher, Terrell, Terry, Upton, Ward, Wheeler, Winkler, and Yoakum. | 3/14/2013 |
Atlanta HOC | Northern Illinois: Cook, Dupage, Lake, Will, Boone, Carrole, Dekalb, Grundy, JoDavies, Kane, Kankakee, Kendall, Lee, McHenrey, Mercer, Ogle, Rock Island, Stephenson, Whiteside, Winnebago | 3/1/2013 |
Atlanta HOC | Western North Carolina: Alexander, Alleghany, Anson, Ashe, Avery, Buncombe, Burke, Cabarrus, Caldwell, Catawba, Clay, Cleveland, Cherokee, Davidson, Davie, Forsyth, Gaston, Graham, Haywood, Henderson, Iredell, Jackson, Lincoln, Macon, Madison, McDowell, Mecklenburg, Mitchell, Polk, Rowan, Rutherford, Stanley, Stokes Surry, Swain, Transylvania, Union, Yadkin, Yancy, Watauga, Wilkes | 3/1/2013 |
Denver HOC | Oklahoma | 4/16/2013 |
EARNEST MONEY PAYEE – QUICK REFERENCE CHART
| The earnest money payee varies based on HOC Area and type of Closing Agent Program (HUD Designated Closing or Buyer Select Closing). Reference the Earnest Money Guidelines for complete instructions on handling earnest money. | |||
HUD Region | HUD Designated Closing Agents Earnest Money PAYEE | Buyer Select Closing Agents Earnest Money PAYEE | Certified Funds Only (Special Requirements) |
Atlanta HOC | The earnest money must be made payable to “HUD”. | The earnest money must be made payable to the closing company selected by the buyer. | Cashier’s Check or Money Order (certified funds) |
Denver HOC | The earnest money payee must show two names (HUD and the name of the buyer) separated by the word “OR”. For example: Pay to the order of “HUD OR Buyer Name”. | The earnest money payee must show two names (Buyer Selected Closing Agent and the name of the buyer) separated by the word “OR”. For example: Pay to the order of “ABC Closing Agent OR Buyer Name”. | Cashier’s Check or Money Order (certified funds) |
Santa Ana HOC | Same as Denver HOC with the exception of Hawaii | Same as Denver HOC | U.S. POSTAL Money Order or Cashier’s Check (certified funds) |
HUD ATLANTA HOMEOWNERSHIP CENTER BROKER BONUS INCENTIVE
| Effective 12/1/2011 – A broker bonus is being offered in eight market areas. Georgia, Florida, Mississippi, Alabama, Illinois, Indiana, Tennessee, and Kentucky. |
The following conditions must be met in order for the selling broker to receive the applicable broker bonus.
Note: The Atlanta Homeownership Center will not consider any appeals submitted by the selling broker for properties that fail to close within the aforementioned timeframes. No exceptions. In order for your contract to be eligible for the broker bonus you must have all applicable bonus forms and commitments submitted correctly at time of contract execution. No exceptions.
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HUD HOMES SALES INCENTIVES
| For a limited time, FHA offers sales incentives on HUD homes that will make these homes more affordable for homebuyers when purchasing a property using FHA-insured financing. The incentives VARY from State to State but may include: low down payments; sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount; broker bonuses for owner-occupant sales. The benefits of FHA financing are low down payments; competitive interest rates; flexible credit qualifying. To find a HUD-Approved Lender, and for the latest sales incentives in your areas, visit HUDhomestore.com. The program incentives are subject to change without prior notice. | |
Sales Incentives (subject to change without prior notice) | Participating States |
$100 Down Payment! Available to Owner Occupant Homebuyers when purchasing a property using FHA-insured financing. | Illinois, Indiana, Kentucky, Tennessee, S. Carolina,N. Carolina, Georgia, Mississippi, Alabama, Florida, Puerto Rico, Virgin Islands |
Good Neighborhood Next Door (GNND)
For Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence. When a law enforcement officer, teacher, firefighter, or emergency medical technician chooses to use an FHA- insured mortgage, the down payment is $100. Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. GNND buyers can bid in lottery, exclusive, and extended phases, but can bid exclusively on insured single unit homes in revitalization areas in the lottery phase. GNND buyers are given preference over government agencies and nonprofits in the selection of a bid-winner in the lottery phase. Search for available properties at www.hudhomestore.com, enter State and Buyer Type: Good Neighbor Next Door. View Q & As
$1 Homes
Sales For Local Governments
HUD’s Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each. Please read HUD’s most recent notice on H2011-16 for more information. Search for available properties at HUDhomestore.com, enter State and Buyer Type is Government Agency.
Nonprofit Organizations
Eligible nonprofit organizations, can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Nonprofits rank below Government Agencies in the bid selection process for the lottery, but above them for exclusive and extended listings. Nonprofits cannot bid for dollar homes. Nonprofit organizations that want to obtain HUD approval to participate as a FHA mortgagor, purchase HUD homes at a discount, or administer a Secondary Financing/ Down payment Assistance Program must submit an email directly to their local Homeownership Center (HOC), Program Support Division, indicating that your organization would like to apply for approval to participate in FHA Nonprofit activities. Search for available properties at www.hudhomestore.com, enter State and Buyer Type: Nonprofit.
FHA’s “First Look” Sales Program Neighborhood Stabilization Program
For Governmental Entities, Nonprofit Organizations, and Sub-recipients that have received a HUD-issued Name and Address Identification Number (NAID) are eligible to participate in the First Look Sales Method. The National First Look Program is a first-ever public-private partnership agreement between HUD and the National Community Stabilization Trust (Stabilization Trust). In collaboration with national servicers, Fannie Mae, and Freddie Mac, the First Look program is intended to give communities participating in HUD’s Neighborhood Stabilization Program (NSP)a brief exclusive opportunity to purchase bank-owned properties in certain neighborhoods so these homes can either be rehabilitated, rented, resold or demolished.Information will be available here soon.
Please use the following link https://hudnsphelp.info/index.cfm?do=viewFHAfirstLook for information about this program.
