What is a "HUD Home"?
A HUD Home is a property that was previously financed with an FHA
insured mortgage and where the owner has defaulted on the loan. The
lender, then, forecloses on the home. FHA pays the lender what is
owed; and the lender transfers ownership of the home to FHA/HUD. Then,
HUD sells it through an auction process.
Who can buy a HUD Home?
Anyone who has the cash or can qualify for a mortgage can buy a HUD
Are HUD Homes meant for people with low incomes?
HUD homes range in price, but most are affordable for low- and
Is it true I can get a HUD Home for a dollar?
No. HUD sells homes at close to market value - that means that the
price is set based on the price of similar homes sold in the area.
If the HUD Home needs repairs, will HUD make them?
HUD Homes are sold "as-is," without warranty. That means that HUD will
not pay to correct any problems. Buyers are encouraged to get the home
Houses built before 1977 may have lead based paint, which can cause
harm to your family; so be sure to read about this hazard and about
what you would need to do to correct it.
How do I buy a HUD home?
HUD Homes are sold through participating real estate agents like
Michael Smith of Chapman Hall Realtors. Bids must be submitted by a
real estate agent.
Normally, HUD Homes are sold in an "Offer
Period." At the end of the Offer Period, all offers are opened and,
basically, the highest reasonable bid is accepted. If the home isn't
sold in the initial Offer Period, you can submit a bid until the home
is sold. Bids can be submitted any day of the week, including weekends
and holidays. They will be opened the next business day. If your bid
is acceptable to HUD, your real estate agent will be notified, usually
within 48 hours.
How can I find out what HUD Homes are for sale?
Visit our HUD Homes for Sale section.
The list of HUD Homes for sale is updated daily. If you see one that
interests you, contact us.
How can I get a loan to buy a HUD Home?
HUD does not make loans directly. You can contact a HUD approved
lender, who will take you through the steps and actually make the
loan. Please visit our Mortgage
Information section for more information about obtaining
Can I buy a HUD Home as an investment?
Most HUD Homes are initially offered on a priority basis to owner
occupant purchasers (people who are buying the home as their primary
residence). Following the priority period, unsold properties are then
available to all buyers, including investors.
Information courtesy of The US Department of Housing
and Urban Development (HUD) and CitiWest Best Assets.
Graphic Design Elements © 2003 Chapman
© 2003-2013 Michael Smith. All Rights