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HUD Homes $100 For Down

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Real Estate Sales Representative with Your Castle Real Estate
Hud Homes for ONLY $100 Dollars Down!
Written by Jamie Abeyta   
Friday, 26 June 2009 00:00

Department of Housing and Urban Development (HUD) residential foreclosures are available throughout the United States. Owner Occupants can participate in the $100 down program.  This sales process for the purchase of a HUD home isn't quite the same as you'll encounter when buying a home from an individual, so here are a few tips before you go home shopping.

What is a HUD home?
The Federal Housing Administration (FHA) is a part of HUD--the part that provides federal mortgage insurance. If a foreclosed home was purchased with a loan insured by the FHA, the lender can file a claim for the balance due on the mortgage. FHA pays the lender's claim, then transfers ownership of the property to HUD, which sells the home.

How much do HUD homes cost?
HUD homes are appraised, then priced at fair market value for their location. The price of a home in need of repairs is adjusted downwards to reflect the investment the new owner must make to improve the home.

Will HUD make the repairs?
HUD homes are sold as-is. The new owner is responsible for all repairs and improvements.

How do I find a HUD home?
You can view HUD listings by following state links on HUD's Web site, http://www.mcbreo.com/ Each state's Internet destination is set up a little differently, so take some time to browse the search engines and layout.

When you've located a home you would like to see, you need to find a HUD-approved real estate agent and he can show you the property. You must use a HUD approved agent.

Do I simply make an offer to purchase a home?
HUD foreclosures are sold using a bidding process. There's an Offer Period, during which sealed bids are accepted from your agent. At the end of that period, all offers are opened. HUD will generally accept the highest bid, or the bid that brings them the highest net.

If the home remains unsold after the initial period, bids are opened as received.  If your bid is accepted, your agent will be notified within a day. You will be given a settlement date, usually 30-60 days from the date of your accepted contract.

Will HUD finance the home?
HUD does not finance homes. You'll need to arrange for financing with a lender or pay cash. Be sure your financing is in order before you make an offer. If your bid is accepted, and you do not close on the house, you may lose the earnest money deposit you submitted with the offer.

Should I have a professional home inspection?
Home inspections are recommended for any home purchase. You should inspect a HUD foreclosure before you make the offer to purchase. It will help you determine a bidding price, especially if repairs are required.

Homes build prior to 1978 may contain lead paint, so learn more lead paint hazards before making an offer. Other items to consider are asbestos content, buried storage tanks, and other environmental hazards.

Can I buy a HUD foreclosure for investment purposes?
During the initial offering, (10 days) HUD homes are usually available only to those who wish to live in the home. If an owner-occupant does not bid on the home, investors are allowed to enter the bidding process.

Does HUD offer other programs?
HUD offers special home purchase programs for teachers and full time law enforcement officers.

Show All Comments Sort:
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Amazing that you can get a home for such little money down. We don't see many HUD foreclosures in our area.

Feb 25, 2010 04:31 PM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Jamie, once again, you've hit all the right points. Our HUD homes hit the MLS every Tuesday and Friday. Owner-occupants need to get their bids in right away on the good ones.

Feb 25, 2010 04:32 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

We have very few HUD foreclosures in our area our prices went to high to have FHA loans.

Feb 25, 2010 04:33 PM
Wendy Rich-Soto, Realtor/Broker Associate
Keller Williams Realty, LA Harbor - San Pedro, CA
" A great Realtor? Everyone knows it's Wendy!

Your broker better be HUD approved.  :-)  Not too many HUD homes in LA county...

Feb 25, 2010 04:50 PM
Sam - Jamie Abeyta
Your Castle Real Estate - Westminster, CO

Great tip Wendy, the agent should be HUD approved.  In Colorado, if the Managing Broker is HUD approved, all agents under them can sell HUD homes under his/her HUD I.D.  This can cause some problems with agents who arent familiar with HUD's rules and regulations.  I get a hanful of calls each week from agents asking for advive on making a HUD offer and purchase.

Maria, HUD comes out with a new list of homes every Friday, and relisted homes on Wed and Friday. 

Feb 25, 2010 05:02 PM
Dawn Horras

Very helpful info and well written--you must've attended a fine high school to learn how to write like that!!!  Nice job, Sam!  Can an individual live in it and flip it in two years?

Jan 11, 2016 08:09 AM
Roy Kelley
Retired - Gaithersburg, MD

The $100 down program is not available on all HUD properties. Buyers should obtain current information from their local agent.

Feb 25, 2010 10:50 PM