Thursday, March 24, 2011

How to Find and Buy a HUD Home

What is a HUD Home?

HUD stands for the Department of Housing and Urban Development. HUD is the US government agency that oversees the FHA loan program.

A HUD home is a house that used to have an FHA mortgage, but it went into foreclosure. HUD now owns the property.

How to Buy a HUD Home

• HUD homes are sold by bidding on them.
• HUD lists a sales price on their web site, but you can bid more or less than the price listed on the web site.
• You must use a real estate agent to place the bid for you.
• Not every real estate agent is signed up with HUD to place bids, but it is very easy and quick for them to do so.

How to Find HUD Homes

Here is the web site to find HUD homes:

Special HUD Home Programs

• Occasionally, HUD will offer special programs so they can sell HUD homes faster.
• Some examples: HUD homes for $100 down, closing costs paid by HUD, special incentives to real estate agents.
• Check the HUD home web site for details and to see if any specials are in effect now.

Financing a HUD Home

• HUD will accept any type of loan or cash for one of their properties.
• If the financing is going to be an FHA loan, the web site listing will tell you which types of FHA financing are available for that particular property.

Common Misconceptions

• You do NOT need to get FHA financing to buy a HUD home.
• HUD homes are NOT just for first-time home buyers. Anyone can buy a HUD home.
• An individual CANNOT buy a HUD home for $1 down. That program is reserved for non-profits and government agencies.
NOT all HUD homes are destroyed. Some are in good shape and some are in bad shape, just like other properties.

Want to watch our video of this tip? Check it out on our web site by clicking here.

Want to make sure your loan closes? Call the Mortgage Experts at 303-345-3683.

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