Had a call yesterday from a Realtor that read the breakdown of the HUD $100 down mortgage plan. She said "well I would hate to see the interest rate on that kind of loan!" She was pleasantly shocked to learn that the interest rate offered was the same as a regular FHA loan (currently less than 5% for a 30 year fixed). The rate is the same as a regular FHA loan, the upfront mortgage insurance premium is the same as a regular FHA loan, and the monthly mortgage insurance is the same as a regular FHA loan.
Her next question was "where is the catch?" I had to explain that the "catch" was that this was only for HUD owned properties. That's the only real "catch". Just the restrictions listed yesterday's program breakdown.
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