BUYING A HUD HOME

eho

WHAT IS A HUD HOME?

A HUD home is a property that has been conveyed to HUD by the lender as a result of foreclosure when the borrower defaults on the FHA-insured loan. HUD in turn sells the property at “AS-IS” market value based on a recent appraisal as quickly as possible through an Asset Manager (AM) such as BLB Resources, Inc. HUD homes vary in price, location and condition. Some are move-in ready condition!

BENEFITS OF BUYING A HUD HOME:

  • HUD will pay up to 3% of buyer's closing costs
  • New properties become available daily
  • HUD promotes owner occupancy

WHO CAN BUY A HUD HOME?
HUD Homes may be purchased by any individual, company, HUD-approved non-profit organization, or government entity that can secure financing or pay cash for the property. Interested buyers must submit bids through a HUD-registered real estate agent.

There are two main types of HUD Home purchasers: owner occupants and investors. An owner occupant buyer is a person who will live in the property as their primary residence for at least one year and has not purchased another HUD Home as an owner occupant within the past two years. Investor buyers are people who purchase the property as an investment or as a second home, or who do not qualify as an Owner Occupant.

HOW CAN I BUY A HUD HOME?
If the buyer is financing the purchase of a HUD Home, HUD first requires the buyer to be pre-approved for a mortgage in an amount sufficient to purchase the property.  If the buyer is paying cash, the buyer must provide verification of funds. Once the buyer has obtained a pre-approval or verification of funds, the buyer should find a HUD-registered agent, who can help the buyer find an appropriate property and submit a bid on it.  All buyers must submit their bids online through a registered real estate agent.

WHAT IS THE EXCLUSIVE LISTING PERIOD FOR HUD HOMES?
When a HUD home is first listed for sale, priority is given to owner occupants, non-profit organizations and government entities. The duration of this exclusive listing period will vary depending on the property’s FHA insurability.

WHEN CAN INVESTORS SUBMIT BIDS?
After the exclusive listing period has expired, unsold properties enter the extended listing period. These properties are available for all purchasers, including investors, on a daily basis until an acceptable bid is submitted. Bids are opened and reviewed the following business day.

HOW CAN I FINANCE THE PURCHASE OF A HUD HOME?
The buyer may pay cash, obtain FHA financing from a HUD approved lender or secure conventional financing.  Please contact a mortgage company of your choice for information on common mortgage programs, qualifying guidelines and how to obtain a mortgage appropriate for you.

HOW CAN I FINANCE THE PURCHASE OF A HUD HOME?
The buyer may pay cash, obtain FHA financing from a HUD approved lender or secure conventional financing.  Please contact a mortgage company of your choice for information on common mortgage programs, qualifying guidelines and how to obtain a mortgage appropriate for you.

CONTACT US

For more information, 
please
contact us today.
916.960.4850