
How to Qualify for a HUD Home
The first step in acquiring a HUD home is to determine your eligibility. Any individual who can provide the required cash to purchase a HUD home are considered eligible. Additionally, if you qualify for a loan through a mortgage lender you may be considered eligible, although some restrictions may still apply. You will need to speak with a representative from HUD (HUD) to determine whether you will face certain restrictions when attempting to purchase a HUD home with a loan, as this is usually determined on a case by case basis. You can purchase a HUD home if you intend to occupy the home after you have obtained ownership. HUD homes are typically offered to owner-occupant purchasers first before they are offered to other potential buyers. If you do not intend to live in a HUD home following your purchase, you may still be eligible to buy the home. If HUD tried to secure an owner-occupant purchaser and failed to do so, the following individuals may buy the HUD home:- Investors
- Registered real estate brokers
- Non-profit organizations and other organizations
- State governments
- Local governments
What to Do Before Purchasing a HUD Home
Once you have determined your eligibility and have decided to purchase a HUD home, there are several tips to keep in mind to ensure the process is a smooth one. Before you purchase a home, you should elect to have a home inspection. HUD does not guarantee the condition of the property you are seeking to buy. This means you may encounter unexpected issues or damage to the property after you have already completed the purchasing process. It is best to avoid this scenario as you could end up spending thousands of dollars to repair any possible damage. To ensure you are making the right choice before submitting your offer for a HUD home, you should receive a home inspection from a licensed professional home inspector. If you have determined there is damage to the property during the inspection period and still wish to submit an offer for the HUD home, you may be able to qualify for an FHA 203 (k) Rehabilitation Loan to complete the repairs. This loan allows the homebuyer to receive the assistance necessary to purchase and repair a HUD home. The FHA Rehabilitation Loan is a long-term loan with an adjustable rate and will cover the cost of interim financing, necessary repairs to the property, and a permanent mortgage.About Financing and Discounts for A HUD Home
For those of you who may need additional assistance to purchase a HUD home, you may want to spend time researching the possible discounts available in your area. While not every HUD home is offered at a discount, there are exceptions under certain circumstances. HUD homes identified as FHA REO properties and are in designated Revitalization Areas may be available for a reduced price. However, a reduce sale price is often only offered to:- Teachers
- Firefighters
- Law enforcement personnel
- Nonprofits
- Local governments
- Emergency medical technicians
How to Find Available HUD Homes in Your Area
To find an available HUD home in your area you will need to search through online listings indicating which properties are for sale. An available HUD home will have a sign indicating who the property manager is prior to being listed for sale. You can contact the property manager directly or speak to a representative from HUD to learn more information about a newly listed HUD home. There are a number of websites out there listing HUD homes for sale. However, unless it is the official HUD government site, you should know there is often someone getting a commission, or worse, someone trying to defraud you with a fraudulent listing. The safest way is to go to the official site where they list the homes for sale, as well as linking to listings of other homes being offered for sale by other federal agencies. They list directions so you can do a drive by, or view the location of the house on a map. Prior to listing the HUD home for sale, the property will be appraised, and the property manager will work with HUD to determine if the property is eligible for a discount sales program. Additionally, any outstanding issues with the title for the property will also be resolved prior to being listed for sale.By Admin –