It's simple ... Lower Rates. Lower Payments. $0 Down.

Purchase with $0 Down

A VA Loan is one of the only loan programs that still allows the borrower to finance 100% of the home's value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In many cases they require 10-20% down, putting home ownership out of reach for many prospective buyers.

How much will $0 down save you? Conventional loans will require a minimum of 5% down, and in many cases as much as 10% and 20%.

Lower Your Monthly Payment

A VA Loan offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.

Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment.

Getting Qualified is Easier

The qualification guidelines are less stringent for VA Loans. Because the loan is backed by the government, banks have relaxed the often strict lending rules for VA Loan applicants making them easier to obtain.

#1 Loan for Military Home Buyers

The VA Loan's unique eligibility and features make it the best option for most military families looking to purchase a home. Packed with money-saving advantages such as no down payment requirement and no private mortgage insurance, the VA Loan also is designed specifically for the unique challenges facing service members and their families.

HUD's

Frequently Asked Questions

1)  How does a house become a HUD Home and qualify for the GoodNeighborNextDoor (GNND) program?
The Federal Housing Administration (FHA), which is a part of the Department of Housing and Urban Development (HUD), provides federal mortgage insurance to Mortgage Lenders. This guarantees that Mortgage Lenders will be reimbursed in the event home buyers default on their mortgage. When a lender is forced to foreclose on an FHA-insured single family home, townhouse, duplex, triplex, fourplex or condominium because the owner can no longer make payments, the Lender can file an claim with FHA for the balance due on the mortgage and convey title of the property to HUD. If that home is in a geographically coded area declared as a revitalization zone, then it is first placed on the GNND program lottery program. GNND homes are offered to participants BEFORE the General Public.

2)  Are all HUD homes eligible for the GNND program?
Only a select few properties that are HUD acquired are available for the GNND program. Do not wait for the perfect house or perfect location. If a home is listed that you can qualify to purchase and meets you minimum housing needs, then always try to take advantage of the opportunity. It is only a three year commitment and then you can sell the home or keep it as a rental. Most GNND participants live in their homes well beyond the three year residency requirement.

3)  Where do I obtain financing for the home?
You can use any Lender of you choice and any type of financing. However, to take advantage of the $100 move in program, you must use FHA 203B or 203K financing. Please keep in mind that it is almost impossible to combine other assistance programs with the GNND program. It is also not possible to use a Veterans Administration loan on most properties.

4)  What happens if no one enters the lottery or the winner cannot close on the home they won?
If no one enters the Lottery for a home during the exclusive 7 day GNND reserve listing period, then the home will be marketed to the general public at full price. If the lottery winner can not close on the home, then a Backup participant will be notified they have the option to purchase the home. A primary Winner and two Backups are selected for each lottery drawing if there are at least three participants. Backup winners could be notified of selection in as little as 3 days or up to 3 months after the drawing.

5)  What does IN, IE, and UI mean?

HUD homes are listed three ways "IN" Insurable, "IE" Insured with Escrow, and "UI" Uninsurable. This has nothing to do with home owner's insurance coverage, and everything to do with whether the property qualifies or meets Minimum Property Standards (MPS) for an FHA type loan. In order to obtain an FHA Insured Loan, FHA requires that a home meet certain requirements and standards.

"IN" Insurable means the property in its present condition meets all MPS to qualify for an FHA loan without any repairs.

"IE" Insured with Escrow means that there are some deficiencies that do not meet the MPS, but the home does qualify for an FHA 203B with Repair Escrow loan. These deficiencies or MPS violations are things like broken water heater, minor roof repairs, peeling paint, missing flooring or damaged drywall etc... It has been estimated by the Appraiser of the property that all the repairs would cost $5,000 or less to meet MPS. The Repair Escrow amount is not paid by HUD and is added to the Buyers total loan amount. The Buyer has 30 days to make the repairs and then after an inspection; your Lender releases the repair escrow money to you.

"UI" Uninsurable means that it has been estimated that repairs needed to bring the property back up to MPS would cost more than $5000. This property does not qualify for FHA 203B financing, but as with most HUD properties it does qualify for FHA 203(K) financing or 203(K) streamline financing. FHA 203K Financing is a property acquisition loan and home improvement/repair loan all rolled into one.

Some HUD homes cannot qualify for any type of FHA financing but they are very rare. These properties can only be purchased with conventional financing methods or cash.

6)  Should I get Prequalified for a mortgage?
Yes! Get started on the mortgage loan process through a FHA Lender who has experience with the 203K and 203B loan products as soon as possible. You cannot enter the Lottery without being prequalified or showing you have the funds to pay cash.

7)  When does the Lottery drawing take place and when will I find out if I won?
The lottery drawing takes place eight days after the house is listed. All entries must be received before midnight the seventh day. All Winners are notified the following day of the lottery drawing unless it falls on a weekend or Federal holiday. If the initial winner does not close, then the option to buy the house goes to the backup entrant. Backup winners may be notified weeks or even months after the lottery drawing has taken place.

8)  Should I look at every home that becomes available before I enter the lottery?
Yes! Remember these homes are FORECLOSURES and are often neglected for several months prior to HUD taking ownership. HUD sells property "as is" and does not fix them up for curb appeal. Make sure the AREA is right for you and the repair escrow or 203K loan will take care of the house fix up expenses.

9)  What if I win a home and then change my mind about purchasing it?
If you decide not to purchase the home after your contract has been accepted by HUD, then you will lose your earnest money. HOWEVER, should the Buyer become unable to get financing, illness, job loss, or death of immediate family member, or for other good cause, then the earnest money will be refunded to the Buyer. Any money spent on inspections, surveys, structural engineer reports or utility connections will not be refunded.

10)  What is the maximum amount that can be financed for repairs on the FHA 203K loan?
You can borrow up to 110% of the total appraised value for acquisition of the home, repairs, remodeling, upgrades, and appliances with the regular 203(k). And up to $35,000 on the streamline 203(k).

11)  Who makes repairs and improvements to the homes?
On the FHA 203(B) with Repair Escrow the Buyer can have anyone make repairs or do the repairs themselves. On a 203(K) loan any FHA approved licensed contractor can make repairs and do improvements to your home, but check with your Mortgage Lender for additional contractor requirements.

12)  What are my chances of getting a home?
The chances of winning are directly proportional to the number of entries.

13)  How long does it take to close on a home?
Homes with an "IN" or "IE" designation usually close in 55-60 days after the drawing. Homes designated "UI" usually close 70 to 80 days after the drawing.

14)  If I am moving to another state when can I start entering the Lottery for homes in my new state?
You can start entering the Lottery in other states as soon as your employment can be verified and you are considered a FULL TIME employee in your new state. Federal Law Enforcement Officers can enter any Lottery in any state at any time.

15)  What if me or my wife own a home?
Current homeowners can no longer participate and you can not have owned any residential real property for 365 days prior to lottery submission. Also, you are considered a current home owner if your spouse owns a home or has owned a home within the last 12 months. Vacant land, vacant lots, timeshares and any mobile homes or travel trailers that are taxed as personal property are not considered residential real property in most cases.

16)  Am I restricted to bidding on properties in any particular area?
School Teachers and Firefighters/EMTs are restricted to homes that are located in the area or District serviced by their employer. Law Enforcement officers are restricted to homes that are within a reasonable commuting distance since GNND homes must be your primary residence. Federal Law Enforcement Officers are the only UNRESTRICTED participants in the GNND program. Federal Bureau of Prisons and University/College employees are no longer eligible.

17)  How much earnest money do I have to put down?
The program does require 1% of HUD's listed price to be presented at time of contract submission in the form of certified funds(cashier's check or money order) payable to the US Dept. of HUD. Minimum amount of earnest money is $500 if the listed price is below $50,000 but the maximum is $2,000 for homes appraised over $200,000.

18)  How does the $100 move in work? What about Closing Cost?
If you choose to take advantage of the FHA $100 move in option, then all normal closing cost, repairs, improvements, broker commissions and fees associated the acquisition of the property are added to your total loan amount and are part of your mortgage. You can choose to pay these expenses out of pocket if you like.

19)  There are several homes I want. Can I enter the Lottery on more than one property?
Yes! HUD does not allow you to choose homes if you are the winner of more than one house. You will be awarded the first property won and any subsequent wins will be passed on to the next entrant. The order in which Lotteries are conducted is random.

20)  What continuing obligations apply to me if I purchase a home Program?
1.Continue to own, and live in as your sole residence, the home you purchased through the Good Neighbor Next Door Sales Program.

2.Certify initially and once annually this to be true.

21)  May I purchase a multi-unit property if I plan to live in one of the units as my sole residence?
No, only single-unit properties are eligible for the Officer Next Door Sales Program.

22)  What happens if I get called to active military duty and get deployed?
Participants called up to active military duty and are deployed are provided clemency in regards to the owner occupancy requirements of the program for the time frame that they are deployed. Participants on deployed military duty are not required to occupy the property and are allowed to rent the property (only while deployed) if necessary to minimize potential vandalism risk. Written permission must be obtained from HUD prior to renting your GNND home.

23)  Can I sell the Good Neighbor Next Door Home and keep the profit?
YES! After you live in the GNND home for the entire occupancy term, you can sell the home and keep all the equity and appreciation. Most occupancy terms are just three years. Homes sold FHA 203B with repair escrow are 3 years and 30 days. Homes aquired through FHA 203K financing are 3 years 6 months occupancy term.

24)  Can I Bargain with HUD on the Price of a Property?
Everyone offers the exact same HUD list price(which is also the current "as is" appraised value) on any GNND property. Then Lottery winners get a 50 percent discount off of that list price.

25)  What happens if I fail to honor the 3-year residency requirement?
HUD can demand re-payment of the discounted amount on a prorated basis. That means you would have to re-pay to HUD base on a percentage of the 36 months(3 years) you owned and lived in the home. If you received a $60,000 discount on a $120,000 home and sold the home after 18 months(One and half years), then HUD will take $30,000(half the discount) from the proceeds of the sale. At the end of the occupancy term there are no restrictions or penalties on the sale of the property. Occupancy term is extended six months for a home purchased with an FHA 203K rehab loan.

26)  I have a foreclosure on my credit. Can I still participate in the program?
Yes, but FHA financing will not be available until three years after the foreclosure. Private investors or family members will often lend money on these properties because of little risk and security of investment. If you have the funds available, then you can pay cash and not finance anything.

27)  Why do I have to sign up to see the property details?
You do not have to sign up if your just browsing the website. Simply click on the SEARCH HERE FOR HUD GNND HOMES and view all the properties in the nation. Members will be notified via email of new homes that become available, so be sure to sign up.

28)  How long do I have to live in the GNND home?
You must live in your GNND home for at least 3 years to sell it without a penalty. This time is extended 30 days for IE property and 180 days for UI property purchased with FHA financing.

29)  During the 3 year occupancy term can I rent out my GNND home and live somewhere else?
If you are called up for Military ACTIVE DUTY and deployed, then you may rent out or lease your GNND home after approval from HUD.

30)  Why is my Social Security number required?
This is the only way to make sure every participant enters the lottery only one time on any given home and that they have NOT previously purchased a GNND home.

Home sales across the commonwealth posted an 8-percent increase during the third quarter of 2011 compared to a year before, although part of the growth appears due to the expiration of the federal tax credit for buyers in mid-2010, which sapped buyer enthusiasm at the tail end of the year.

Sales for the July-to-September period totaled 22,505 across the state in 2011, up from 20,774 transactions a year before, according to figures reported by the Virginia Association of Realtors. 

In reporting the data, the organization noted that it is challenging to predict which way the market will head in the near future.

“Virginia’s housing market will likely be strengthened by low interest rates, rising residential rental rates, pent-up demand and an improving household balance sheet,” the real estate trade group said.

But . . . 

“A return to stability in the house market may be slowed by employment trends, low consumer confidence, tight lending and underwriting standards and significant policy issues,” the Virginia Association of Realtors added.

While the 22,505 sales for the quarter were higher than the total in the third quarter of 2010, it was about 14 percent below the sales total of the third quarter of 2009 and about 15 percent under the sales total of the third quarter in 2008.

Part of the extremely low sales total from the July-to-September period last year was due to the expiration of the federal home-buyer tax credit. Buyers had jumped into the market in early 2010 to take advantage of what essentially was free money, and after it expired, the national real estate market, as expected, went months with low sales.

Six of the seven geographic areas of Virginia showed higher third-quarter sales in 2011 than 2010. But the one holdout was the biggest: Sales in Northern Virginia totaled 10,245, down 2.1 percent from the same period a year before.

(The “Northern Virginia” region is broadly defined by the Virginia Association of Realtors. It includes both the inner and outer suburbs of Washington D.C., and stretches down past Fredericksburg to the south and to the West Virginia line to the west.)

Among other geographic reporting areas:

* Sales were up 18.9 percent to 5,211 in the Hampton Roads area.

* Transactions were up 16.5 percent to 3,353 in the Greater Richmond area.

* Sales increased 25.5 percent to 1,761 in the Roanoke/Lynchburg/Blacksburg corridor.

* Transactions were up 10.3 percent to 1,158 in the Central Valley area that sits between Northern Virginia and the Blacksburg/Roanoke region.

* Sales were up 29.3 percent to 491 in Southside Virginia, which straddles the North Carolina border.

* Transactions rose 44.6 percent to 350 in Southwest Virginia.

Statewide, the median value of all homes that sold during the third quarter of 2011 was $235,000, up slightly – all of $100 – from the $234,900 reported in the second quarter of the year but down from the $249,900 reported in the third quarter of 2010.

“Home values in Virginia have only fallen 4.6 percent over the past three years, which is extraordinary, given the larger adjustments in home values seen in some other parts of the country,” the Realtors’ group said. 

At the same time, the group cautioned that median sales prices are unlikely to move much higher until demand for housing picks up. But figures show that home sales have been higher in the under-$300,000 market statewide, “an important indicator of market stabilization.”

The broader Northern Virginia market had the highest median value for the quarter, at $326,000, up 1.1 percent from a year before.

Median sales prices were $200,000 in Hampton Roads (down 9.8 percent); $200,000 in the Central Valley (down 7.2 percent), $185,471 in Greater Richmond (down 6 percent), $154,950 in Roanoke/Lynchburg/Blacksburg (down 6.1 percent), $115,000 in Southwest Virginia (down 5.2 percent) and $95,000 in Southside Virginia (up 15.9 percent).

Sales volume for the quarter was $6.6 billion, up from the $6.4 billion reported a year before. It took an average of 91 days for homes that sold during the third quarter to go from listing to ratified sales contract, up from 81 days a year before.

Statewide, there were 12,668 homes working their way through the foreclosure process during the third quarter, up 3.2 percent from a year before. All regions of the commonwealth showed increases in foreclosed properties except Hampton Roads and Southwest Virginia.

Posted: 10 Nov 2010 05:31 PM PST

Did you know that home ownership has recently come under attack, with some questioning whether home ownership is good for America? We as Realtors should already know the importance of home ownership. In case you’ve forgotten why home ownership matters…

To People
- Home owners are happier and healthier and enjoy a greater feeling of control over their lives
- Owning a home is one of the best ways to build long-term wealth. Historically, a home owner’s net worth has ranged from 31 to 46 times that of a renter.
- Home owner’s are free to redecorate, renovate and modify their homes as they wish.
- Most home owners enjoy stable housing costs – a fixed rate mortgage payment might not change for 15 to 30 years while rent typically increases three percent a year.
- Home owners can typically deduct mortgage interest and property taxes on their federal individual tax return.

To Communities
- People who own homes vote more, volunteer more and contribute more to their neighborhoods
- Home owners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.
- Children of home owners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time in front of the television.

To America
- 67 percent of American households are owner-occupied. America is a nation of home owners.
- Home owners pay 80 to 90 percent of federal income taxes, contributing to federal programs that benefit all Americans.
- Every home purchased pumps $60,000 into the economy for furniture, home improvements and related items.
- Housing accounts for more than 15 percent of the national Gross Domestic Produce, a key driver of our national economy.

For these reasons and more, home ownership has been and will continue to be the American dream! For more information and data on the points above, visit realtor.org/homeownership

The number of foreclosure-related notices filed in May in Hampton Roads was 944, down about 19 percent from 1,164 in April, an online foreclosure-monitoring service based in Irvine, Calif. Still, foreclosures are up 150 percent from May 2008, when 377 were reported.

Auction notices and bank repossessions fell in nearly all cities in Hampton Roads.
Vinod B. Agarwal, an economist at Old Dominion University, said recent declines in the jobless rate in Hampton Roads combined with slowing job losses could be helping to stem foreclosure activity. Still, he called the local numbers in recent months high and indicated there could be more to come.

Koch estimated that about half of the foreclosures in the region are the result of job losses. In June, the region's unemployment rate pushed higher, to 7.4 percent.

Hampton Roads foreclosures decline for 3rd month

Foreclosure auctions and home repossessions in Hampton Roads dropped in July for the third consecutive month, signaling the foreclosure problem could be leveling off, according to a report to be released today.

The number of local foreclosures last month was 1,219, down 19 percent from June but up 31 percent from July 2009, according to RealtyTrac, a foreclosure-monitoring service based in Irvine, Calif.

Local foreclosure activity reached a record high in April, but has declined each month since. Last month, both the number of foreclosure auctions and bank repossessions fell. Of the seven major cities in Hampton Roads, foreclosures rose only in Hampton and were most prevalent in Norfolk and Portsmouth.

Across the nation, foreclosures rose nearly 4 percent last month. However, the volume of foreclosures nationwide is down nearly 10 percent compared with July 2009. The national figures include notices of default, the first stage of the foreclosure process after a homeowner has missed mortgage payments.

The number of homeowners falling behind on their mortgage seems to be leveling off, RealtyTrac CEO James J. Saccacio said in a news release, but lenders are processing foreclosures at a much faster pace than they were a year ago.

For homeowners, that translates into less time to try to save their homes, said Dotty Acampora, a foreclosure-prevention counselor at the nonprofit Virginia Beach Community Development Corp.

Each week, Acampora scans the foreclosure listings in the newspaper to check whether one of her clients has a looming auction date.

"Once the sale gets posted, my job gets a whole lot more complicated," she said. "I have to start making calls, to the attorneys, to the servicer, to the investor. Really harassing them to get them to hold off."

Josh Brown, The Virginian-Pilot