A HUD Home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA mortgage. Once the house is foreclosed on, HUD becomes the property owner and offers it For Sale to recover their loss.
We can help you buy one of these homes. The information provided here is to introduce you to the process of searching and buying a HUD Home and provide you with listings of HUD properties for sale.
LAW ENFORCEMENT OFFICERS · TEACHERS · FIREFIGHTERS
Help a neighborhood! Buy a home through HUD’s Good Neighbor Next Door initiative. This program is designed to encourage renewal of revitalization areas by providing law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase certain homes in these communities at substantial discounts of 50% (fifty percent) off the list price.
Learn more about HUD’s Good Neighbor Next Door Sales Program.
Additional discounted sales programs allow local governments and qualified nonprofit organizations to purchase homes at a discount. These are referred to as Dollar Homes and Sales to Non-Profits.
The HUD Home Store is the listing site for HUD Real Estate Owned (REO) properties. This new site is where you Search For HUD Listings, Place Bids to Purchase a HUD Listing, and find informative user-friendly features providing advice and guidance on the HUD home buying process.
Top 10 FAQ’s
1. What is HUD? The U.S. Department of Housing and Urban Development. Please visit www.HUD.gov for additional information.
2. Do I need a realtor to place a bid for me? Yes, please contact a broker who is registered to bid with HUD.
3. How do I find a property to bid on? Log onto www.hudhomestore.com to search for available HUD properties.
4. How can I obtain financing for my property? Please contact a lender or mortgage broker. You can use FHA or conventional financing to purchase a HUD home. You may also purchase a property with cash.
5. How much money do I have to put down on a home? The answer depends on the type of financing being used. For FHA financed properties, the down payment is 3 ½ percent (3.5%) of the sales price.
6. What is the Good Neighbor Next Door (GNND) program? The good neighbor next door program allows teachers, police officers, fire fighters and EMS personnel to purchase HUD properties that are located in a revitalization area for a 50% discount if they live in the property for 36 months. More information is available online: http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm.
7. I am an investor. When can I bid on a HUD property? During the exclusive listing period, bids may be submitted by Owner Occupants. At the conclusion of this exclusive listing priority period, all general public bids will be accepted.
8. When can I complete a home inspection on the property? All purchasers are strongly encouraged to perform a walk through inspection at or near the date of your contract acceptance and, again, immediately PRIOR to closing. If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify HUD’s property manager of the damage. The purchaser or agent should complete the Property Damage Report and fax it to the appropriate fax number listed on the form. Reporting the damage does not guarantee the correction of the problem that has been discovered. The lack of written documentation describing property condition at contract acceptance, however, will preclude consideration for repairs or price adjustments in the event of subsequent damage. Each case will be looked at independently and a determination will be made as to whether the damage will be repaired (or not repaired) or, under some circumstances, credits given at closing. The buyer assumes full responsibility for the property and its condition on the date of closing. HUD assumes no responsibility and will make no settlement for damages reported to HUD after the close of escrow.
9. Does HUD give money for repairs to the property? No. However, a home buyer may wish to utilize an FHA 203K streamline loan to finance repairs on the property.
10. I would like to report a problem with a HUD home in my neighborhood. Who do I contact? Please contact the field service manager or the asset manager assigned to the property. You can find the asset manager by visiting www.hudhomestore.com and searching for the property by street address.
Need More Information on HUD Homes?
