Potential homebuyers may be able to get a deal on an FHA home loan with a sales program that offers drastic discounts, which are reported to be around 50% off of list prices on homes, to those who are eligible. With numerous FHA foreclosures taking place across the nation, this discount program is hoped to promote housing in areas where foreclosures have been high by offering these discounted homes to individuals like law enforcement officers, teachers, firefighters, and emergency medical technicians.
Homeowners who qualify for this program can, again, receive an incentive from discounts on homes of up to 50% off the list price if they agree to live at the property for 36 months. This data, according to the Department of Housing and Urban Development, is hoped to build up areas where household income and home ownership is low or FHA-insured mortgages are being foreclosed upon at high numbers.
While this program does potentially offer very affordable housing opportunities for specific individuals, there are reports that indicate that not many are taking advantage of this FHA program. Housing seems to be lackluster at the present time despite the fact that low home prices and affordable mortgage interest rates have been made available over the past months, but also, offers like 50% discounts on home prices have also been met with a tepid response.
Homeowners who may look to take advantage of this program are being advised to consult the HUD website and it needs to be understood that certain commitments come with these discounted homes. Again, homeowners may receive 50% off of the list price on a home but if they do not live in that home for 36 months, there could be penalties or fees associated with this type of mortgage.