Why are HUD homes so attractive to owner occupants?

I love the fact that HUD homes have wonderful financial and resourceful programs that assist the owner occupant in the purchase of these homes.  They offer a unique financial benefit called a "Repair Escrow" which enables a buyer to purchase the home of their dreams and have the repairs performed after the close of escrow.  Oftentimes appraisers will call out needed repairs on a home and the lender will insist upon the repairs being performed prior to close.  This requires the seller to perform the repairs, although they don't have to, they have the option of cancelling the contract on the buyer and moving onto another.  By allowing the buyer to incorporate these repairs into their loan and performing the repairs after close it's becomes a win-win for both parties. 

HUD also allows, for the buyer who is financing their home with an FHA loan, to get the pest report paid for as well as picking up the repairs, if any!  This can sometimes be the reason many deals fall apart, because pest repairs can run into the thousands of dollars, the seller won't pay and the buyer can't afford it or they're not allowed into the home to perform the repairs, as most bank owned properties have that condition. 

HUD condos can be financed in compexes whose ratios of owner vs non owner occupants is lower than allowed for lending purposes, whereas non-HUD homes in these same complexes can't get lending and only cash buyers can purchase these properties, causing values to decline significantly.

Although the process to purchase these homes is different than what we're all used to, it's well worth the time to take a look at these properties and contacting your agent if you are interested in a home or investment purchase. 

You can go to www.HUDHomestore.com and you'll find a really fantastic website with HUD homes in all the states in this great country of ours.  If you're an agent desiring to represent buyers on these homes and are not well informed of the process please don't hesitate to contact my office for assistance or go the that same website for more information.