How To Find & Buy Available HUD Homes

By
Mortgage and Lending with Home Loans For All

HUDHomeStore is the listing site for HUD real estate owned single-family properties. This website provides the public, mortgage and real estate professionals, potential buyers, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale. In addition, registered real estate brokers and other organizations can place bids on behalf of their clients to purchase a HUD property. HUD Home Store also includes tons of user-friendly features providing advice as well as guidance for consumers on the home buying process.

 

What is a HUD Home?

 

HUD homes are typically a 1-to-4 unit residential property obtained 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 losses on the foreclosure claim.

 

Who can buy a HUD Home?

 

Anyone who has the cash or can qualify for a loan or mortgage can buy a HUD Home.  HUD Homes are initially offered to owner-occupant purchasers. Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

 

Should I get a home inspection?

 

HUD provides NO warranty as to the condition of its properties and will not pay for the repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get an inspection from a licensed professional home inspector 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 203K 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. Also the 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 involves relatively high interest rates and short amortization periods. The FHA 203K Loan allows you to borrow the money plus up to an additional $35,000 for any repairs needed for the home.

 

What about financing?

 

HUD does not provide financing or lending to buyers of HUD Homes. Prior to making an offer on a home you find on the HUDHomestore, you’ll need to obtain pre approval for the loan. If you have the necessary available cash alternatively 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 an FHA-insured mortgage to finance the purchase.

 

Get HUD Home rates or pre qualify here or go to the HUD Homestore at hudhomestore.com

Comments (0)