Buying HUD Homes

Buying HUD Homes

Great opportunity as long as you work with the right Realtor

There are HUD websites for HUD real estate owned (REO) single-family properties. The new site we use at United Empire Realty provides our team with a centralized location to search the inventory of HUD properties for sale.

In addition, as a NAID registered real estate brokers we can place bids on behalf of our clients to purchase a HUD property.

The web site EXIT HOMEWELL REALTY uses also includes many informative user-friendly features providing advice and guidance for consumers on the home buying process. FAQs are available online for:

What is a HUD Home?

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

The following information is provided to as an introduction to the process through which HUD homes can be purchased. You can either scroll down the page, or access specific topics through the following topic menu. Additional links provided in the menu to the right provide access to FHA program and policy information for homeowners, homebuyers, and members of the mortgage lending and real estate industries.

HUD Homes Topic Menu

Who Can Buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence).

What about a Home Inspection?

HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, at EXIT HOMEWELL REALTY we strongly urge every potential homebuyer to get a Professional inspection prior to submitting an offer to purchase.

If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in applying for an FHA 203(k) Rehabilitation Loan.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. Contact us for more information about FHA’s 203(k) Rehabilitation Loan Program.

What About Financing?

HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home.

While HUD does not provide direct financing for the purchase of a HUD Home, it may be possible for you to qualify for our mortgage company to finance the purchase.

Where Can I Learn About Available HUD Properties?

Any single family property acquired by HUD FHA will display a sign identifying who is managing the property before it is listed for sale. During this time the property is appraised, title issues are resolved, if necessary.

For more information, contact us United Empire Realty.

Remember the Realtor must be registered with HUD in order to present the bid to HUD, it is a very interesting process and we look forward to working with you on a HUD purchase.

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