HUD Turns Gulf Coast REO Into Affordable Opportunity.(Department of Housing and Urban Development)

Washington -- The Department of Housing and Urban Development said it is offering families displaced by the Gulf Coast hurricanes the opportunity to buy HUD-owned properties at a 10% discount off the property's fair market value.

So far, HUD has assisted those displaced or rendered homeless after the hurricanes providing rental housing in HUD-owned properties in South Carolina, Georgia, Florida, Kentucky, Tennessee, Arkansas, Oklahoma and Texas. The new program, which will take off within the next few weeks, extends that assistance one step further offering these families the option to purchase the homes they currently occupy.

According to HUD, the initiative will make available to hurricane evacuees up to 20,000 properties.

"Our goal through this housing assistance initiative is to give families who have been impacted by the disaster a chance to restore stability to their lives," said federal housing commissioner Brian Montgomery.

In addition to the 10% discount, HUD said it is offering to help current tenants pay for property repairs "by funding a repair escrow equal to 15% of the contract price."

Among the loan types available are Section 203(h) financing for disaster victims that allows for 100% financing and Section 203(k) financing that combines both purchase and rehabilitation financing into one loan.

In addition to making homeownership opportunities available to evacuees already occupying HUD-owned properties, the department is establishing a nationwide sales initiative providing discounts and preferences for hurricane evacuees seeking housing anywhere in any of the 50 states.