Hi - are you interested in purchasing a HUD home but dont know where to start? Read the info and then click the link at the end to start your homesearch!
What is a HUD Home? A HUD home is a residential property (with 1-4 units) which was acquired by HUD as a result of a foreclosure on FHA-insured mortgage. HUD becomes the new owner of the property and then must sell it in order to recouperate some or all of the loss.
Who can buy a HUD home? Almost anyone! And you can become a homewner with as little as 3.5% downpayment! HUD Homes are first only offfered to owner-occupant buyers (Buyers who will live in the home as their primary residence). Investors and Second Home Buyers dont fret! If a home is not sold during the owner occupied period it then becomes available to all buyers! Are you a firefighter? K-12 teacher? police officer? HUD offers a 50% discount on their homes to you in their revitaliation areas as long as you agree to live in the home for three years!
Should I get a home inspection? All buyers should do a home inspection prior to submitting a bid on a HUD property as all HUD homes are sold as is and will not be repaired for any reason.
What about financing or do I have to be a cash Buyer? You do not have to be a cash buyer to purchase a HUD home however buyers are respoonsible for obtaining their own financing from a bank/mortgage company of their choosing. HUD does list what types of financing the home will qualify for (IN IE UI) on their website to avoid any confusion to potential buyer. (IN - INSURED most financing option available including FHA IE - INSURED WITH ESCROW most finaning options available if the buyer will escrow funds for specific repairs (not to exceed $5,000 total UI - UNINSURED most finacing otions are limited to 203K or rehab loans as the repairs are in excess of $5,000. And as always cash purchases are available for all HUD homes.
OK! WHO'S READY TO SEE THE HOMES THAT HUD HAS FOR SALE? READY? SET? GO!