How to buy a HUD home.

How to buy a HUD home.                                                     

What is a HUD home?

When someone with a Federal Housing Administration (FHA) insured mortgage can't make their payments, the lender forecloses on the home. FHA pays the lender what is owed and then the United States Department of Housing and Urban Development (HUD) takes ownership of the home

The steps to buying a HUD home are

•1.        Have a Realtor show you the home. 

•2.       If you decide you like the home you place a bid.  All HUD homes are sold as-is.

•3.       Determine your bid price.  This can be done with the help of your Realtor who can help you determine the home's current market value.

•4.       Your Realtor will fill out the bid form which will include the price you are willing to pay for the home, and you can ask HUD to pay your closing costs if you need to.  Your Realtor will submit your bid before the bid deadline. 

•5.       Winning bids are usually posted within 3 business days.  Highest bid wins.

•6.       If you are the winning bid then the process from that point is the similar to buying any other home.  Your Realtor will keep you informed on the contract deadlines.

You can purchase a HUD home that needs repair with special financing from FHA called an FHA203k loan which loans you money based on the home's value when it is fixed up.  It is a great program for people who would like to buy a HUD home that needs repair but don't have the funds to fix it up.

For more information regarding HUD homes in Utah or to see a HUD home contact me.

Angela Bobowski

South Jordan Realty-serving Salt Lake, Utah, & Davis Counties

801-604-1888

angela@bobowski.com email

www.utahhelpnow.com