A HUD Home may be a single-family house, a town home, condominium or other type of residence. Mortgage companies who had foreclosed on FHA-insured mortgage loans deeded the properties to HUD/FHA. Now HUD must sell these homes--as quickly as possible at market value--in order to obtain the maximum financial return on its mortgage insurance funds.

Who can buy a HUD Home?

Anyone who has the money or can qualify for the necessary amount of mortgage financing can purchase a HUD Home. You do not have to be low-income or meet any other such limitations.

Can I get a HUD Home free, or for one dollar?

No. HUD acquires its properties through the foreclosure of FHA insured mortgages. One of HUD's many missions is to maximize return to the FHA insurance fund, which it does by selling the properties at fair market value.

How do I buy a HUD Home?

HUD's policy is to market acquired properties on a competitive basis with sealed bid offers being submitted through any participating licensed real estate broker. Local brokers will assist you in the transaction. They can show the property to prospective buyers, as well as answer questions and provide information on the location of parks, schools, shopping, and employment centers.

Where can you find foreclosed HUD homes?

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors.

You can only buy HUD-owned properties through a licensed real estate broker, whose commission will be paid by HUD.

Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range 5 to 20 percent. When the property is FHA-insured, the down payment can go much lower. Each accepted offer must be accompanied by an "earnest money" deposit equal to 5 percent of the bid price not to exceed $2,000, but not less than $500.

You should be aware that HUD homes are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied.

Are HUD Homes meant for low-income people?

HUD Homes come in a variety of price ranges, though most are affordably priced, making them accessible to low and moderate income Americans.

What are the income requirements?

If you make a cash purchase, there are no income requirements. Otherwise, you must be able to qualify for a particular type of mortgage financing based on established mortgage lending criteria.

How does HUD Decide how much to charge for a HUD Home?

The listing price of a HUD property is HUD's estimate of its fair market value. HUD establishes value by comparing HUD properties to similar properties sold within the community in the previous six-month period.

Can investors purchase HUD Homes?

Yes. However, HUD offers its properties to owner/occupants for a period before making them available to investors.

What happens if I cannot close the sale within the time permitted by HUD?

You will probably have to pay fees for an extension of time, usually in increments of 15 days.

Is there any way for me to get advanced notice about homes that will be coming up for sale?

Yes, by contacting me, I will keep you informed of the current HUD Homes for sale.