Hawaii Randy's Real Estate Opinions: FHA Sales Incentive: Bring The Holidays Home

Aloha Everyone, I just received this notice from my local Wells Fargo agent about the new FHA holiday program. 

Effective for HUD REO sales contracts dated between
Dec. 8, 2006 and Jan. 5, 2007

 The U.S. Department of Housing and Urban Development is offering a special sales campaign, called "FHA Brings the Holidays Home." This campaign is especially designed for low- to moderate-income families and HUD-owned single-family real estate owned (REO) properties across the country.

During the "FHA Brings The Holidays Home" sales event, homebuyers who purchase a HUD-owned home and finance the purchase with an FHA-insured loan will be entitled to sales incentives including:

• $2,500 Holiday Home Improvement Allowance*
• $500 bonus to the selling real estate broker
• Minimum required down payment of only $100

The incentives are effective for HUD homes sold between Friday, Dec. 8, 2006 and Friday, Jan. 5, 2007 to homebuyers who intend to occupy the property as their primary residence for at least 12 months and who do not currently have an FHA-insured mortgage.

In addition to the special holiday sales incentives, buyers may also receive a credit for up to three percent (3%) of closing costs.

The $2,500 Holiday Home Improvement Allowance will be a cash credit from FHA to the borrower at closing, which may result in cash back to the borrower on the HUD-1. This is acceptable for this program. Even though the borrower may receive cash back at close, WFHM must still verify and document the loan file to indicate the borrower has the required down payment and sufficient funds to cover their other costs.

Additional information on HUD disposition programs is available at http://www.hud.gov/ and http://www.espanol.hud.gov/