BUYING A HUD HOME

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage.  HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. When buying a HUD Home, offers must be submitted by a register HUD real estate office and the online bid is reviewed and approved by HUD.

Home Search

HUDHomeStore.com is the official website to find HUD homes for sale.  This site is a centralized location to search the inventory of HUD properties for sale. In addition, registered real estate brokers can place bids on behalf of their clients to purchase a HUD property. HUD Home Store includes many informative user-friendly features providing advice and guidance for consumers on the home buying process.

Financing and Repairs

HUD does not provide financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan, you may buy a HUD Home. HUD does not provide direct financing for the purchase of a HUD Home. However, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

On their website you can see a list of repairs needed for the home to qualify for FHA financing. This doesn’t mean that they will make the repairs, or even that the cost for repairs will be the same as the estimate. HUD homes can qualify for FHA financing when non-HUD homes don’t.

If you buy a HUD Home that needs less than $5,000 in repairs, in Georgia a special incentive is offered with FHA financing that allows you to pay a $100 down payment.  This is a special program only offered by certain lenders and only available for buying HUD properties.

If you are interested in buying a HUD Home that is in need of repair, you may want to consider an FHA 203(k) Rehabilitation Loan. This allows the borrower to get just one mortgage loan, at a long-term fixed (or adjustable) rate. This lets you finance both the acquisition and the rehabilitation of the property.

If you have questions about HUD properties, call Jerri 706-296-4395 or Paul 706-296-4394.