How to buy 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.

BUYING A HUD HOME

If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

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How are HUD Homes sold?
All properties available for purchase by the public are offered for sale at by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.

Are there any special programs?
Properties in designated areas are available at a reduced sales price to police officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments.

INSPECTIONS WHEN BUYING A HUD HOME

We encourage you to get an inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems. See the guide to HOME INSPECTIONS

FINANCING

Although HUD does not offer financing directly, some of the HUD homes qualify for FHA-insured loans. Shop around for a lender to find the best loan terms

HUD Homes

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