How to Buy an HUD Home
HUD homes are available through the Department of Housing and Urban Development (HUD) Homestore website.
Prospective homebuyers should review how to buy HUD homes because they are available to all buyers who qualify.
Residents who choose to buy a home from HUD can usually get a great price because HUD homes are often listed at below market value.
Residents can learn where to buy an HUD home by visiting the HUD Homestore online or driving around local areas looking for signs that indicate “HUD Home For Sale.”
Since there are several advantages of buying a HUD home, potential homebuyers should review the HUD home buying process and their responsibilities in the transactions.
To learn more about HUD homes , including why they are for sale through HUD, the benefits of purchasing one and the buying process, read through the sections below.
Residents wondering where to find an HUD home may also question why the homes are for sale through HUD.
HUD homes are listed on the HUD Homestore website because the previous owner had a FHA-insured loan, has defaulted on the loan and the home was foreclosed upon.
HUD homes are owned by the department and listed to the public for sale so that HUD can attempt to make back as much of the money lost from the defaulted loan as possible.
HUD homes are one- to four-unit residential properties and are always sold as-is to interested buyers.
Potential buyers cannot buy a home from HUD on their own and must utilize the assistance of a licensed real estate agent or broker when attempting to make an offer on a home.
However, HUD home listings are available on the HUD Homestore website and residents can browse through all houses on their own without the assistance of professionals.
When buying a home from HUD , the buyer usually has the same financing options that are offered in a traditional sale. In some cases, buying a HUD home may mean the buyer needs to also take out a special type of FHA loan to finance repairs on the property (https://www.hud.gov/sites/documents/PUBLICFAQ.PDF ).
How to Buy a HUD Home
The first step in how to buy HUD homes is to browse available properties and choose one that is desirable.
HUD homes are sold as-is and HUD does not offer any money for the buyer to make repairs.
First-time buyers can seek a HUD representative for housing counseling if they are unsure of which opportunities are available to them.
Before attempting to buy a home from HUD, the potential buyer should ensure the home is up to his or her standards and potential repairs that need to be made are known.
Knowing what to expect when purchasing an HUD home can alleviate stress during and after the purchase.
The HUD Homestore website is where you can find an HUD home, but potential buyers can also locate homes by driving around desirable neighborhoods and looking for signage that indicates the home is for sale through HUD.
On the HUD homes website, homebuyers who will be occupying the home are given the first access to newly listed homes.
After a predetermined period of time, HUD homes that have been recently listed are opened up to all potential buyers, including investors.
If a buyer wants to buy a home from HUD and he or she is planning to occupy the home, then exclusive first-come access to recent listings is available through HUD Homestore.
The next step to buy a HUD home is to connect with a licensed real estate agent or broker who is registered with the HUD Homestore website and can make an offer on the desired home for the buyer.
HUD will accept the offer, send a counter offer or decline the offer altogether.
If the offer is accepted, then the HUD home buyer should consider scheduling a home inspection to ensure he or she is aware of all the issues with the home.
While HUD homes are sold as-is with no money provided for repairs, a buyer can still back out of a contract if he or she is not satisfied with the condition of the home noted on the professional home inspection.
To find out more about how to buy HUD homes and the steps in the process, download our comprehensive online guide.
Advantages of Buying an HUD Home
HUD homes are listed for reasonable prices, often below market values.
Potential buyers interested in where to find an HUD home quickly learn that the HUD homes’ listing prices are motivators to make offers on HUD properties.
While buying a home from HUD can mean a great deal for these buyers, they should keep in mind that no home repairs are covered by HUD.
If willing to pay for repairs, then HUD home buyers can often obtain larger homes or homes in better locations than they could have afforded with traditional sales.
Additional advantages of buying an HUD home include the specialized buying programs available for eligible buyers.
When buying HUD homes , qualified buyers may be able to take advantage of the Good Neighbor Next Door Program.
A resident who maintains a job in specific industry and attempts to buy a home from HUD located in a revitalization area may be offered the home at a reduced sales price through the program.
To learn more about where to find a HUD home in a revitalization area and the qualifications for the Good Neighbor Next Door Program, review our free and informative online guide.