What is a HUD home?
What are HUD homes?
HUD Homes are one- to four-unit residential properties acquired by the United States Department of Housing and Urban Development through foreclosures on FHA insured mortgages. Once HUD is in full ownership of the home, they put it up for sale in order to cover the loss on the foreclosure. HUD homes are available for purchase to anyone with the required cash or who qualifies for a home loan, including investors. Eligible one- to four-unit properties, as defined by HUD, are either a single-family, duplex, triplex, or fourplex.
Potential HUD home buyers will need an authorized entity such as a real estate agent or mortgage broker to bid on the property for them. Financing a HUD home can be through the FHA home loan program or with a conventional home loan.
Benefits of Buying a HUD Home:
HUD homes sell at lower rates than the current market rates
HUD homes can be found in most areas
FHA financing is available if eligible
Through the GNND (Good Neighbors Next Door) program, HUD offers discounts to EMTs, firefighters, law enforcement officers, and teachers
HUD may pay up to 5% of the closing costs
Available for both owner-occupant buyers and investors