Buyer
What is a HUD Home?
A HUD Home is a one to four unit single-family residence, condominium or townhome that has been conveyed to HUD by the lender as a result of foreclosure when the borrower defaults on the FHA-insured loan. HUD in turn sells the property at “AS IS” market value based on a recent appraisal as quickly as possible through an Asset Manager (AM) Contractor such as PEMCO, LTD. HUD Homes vary in price, location, and condition. Some are move‐in ready condition and others are not.
Who can buy a HUD Home?
Anyone with a valid Tax ID (*SSN or Employer Federal Tax ID) issued in the United States can buy a HUD home. Potential buyers must qualify for a mortgage or pay cash to buy a HUD home. Buyers must have a pre-qualification letter from a certified lender, or proof of funds in the amount of, or greater than the gross purchase price of the property.
Where can I find a HUD home?
HUD homes are listed at www.HUDHomestore.com.
How can I view a HUD Home?
All buyers MUST be accompanied by a broker or agent when viewing any HUD Home listed for sale.
Do I need a realtor to place a bid for me?
Yes, please contact a registered HUD broker or agent to place a bid on a property and to access the home listed for sale. To lookup a broker/agent in your area, visit the HUDHomestore website.
What are FHA sales incentives and how does it benefit owner-occupant purchases?
For a limited time, FHA offers sales incentives on HUD homes that will make these homes more affordable for homebuyers when purchasing a property using FHA-insured financing. The incentives VARY from state to state but may include: low down payments; sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount. The benefits of FHA financing are low down payments; competitive interest rates; flexible credit qualifying. Read more …
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9 Steps to Homeownership
1. Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate.
| How much home can you afford? | |
| Buying vs. Renting | |
| Home Economics |
| Homebuying programs in your state |
2. Know your rights
| Fair Housing: Equal Opportunity for All- brochure | |
| Real Estate Settlement Procedures Act (RESPA) | |
| Borrower’s rights | |
| Predatory lending |
3. Shop for a loan
| Looking for the best mortgage: shop, compare, negotiate- brochure | |
| Let FHA help you | |
| Learn about interest only loans | |
| Avoid Predatory Lenders |
4. Learn about homebuying programs
| Homebuying programs in your state |
| Let FHA help you (FHA loan programs offer lower downpayments and are a good option for first-time homebuyers!) | |||||||||
HUD’s special homebuying programs
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5. Shop for a home
| Choose a real estate agent | |
| Wish list- what features do you want? | |
| Home-shopping checklist? take this list with you when comparing homes | |
| Homes for sale(including HUD homes) | |
| “Fixer-Uppers – home purchase and repair programs | |
| Manufactured (mobile) homes | |
| Build a home |
6. Make an offer
| Making an offer |
7. Get a home inspection
| For Your Protection Get a Home Inspection | |
| 10 Questions to ask a home inspector |
8. Shop for homeowners insurance
| Homeowners insurance | |
| 12 ways to lower your homeowners insurance costs |
9. Sign papers
You’re finally ready to go to “settlement” or “closing.” Be sure to read everything before you sign!
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First Time Buyers
About Buying a HUD Home
Information about HUD Homes
100 Q&A for Homebuyers about Buying a New Home
Buying Your Home: Settlement Costs and Information
Frequently Asked Questions – FAQ
Healthy Homes
Protect Your Family From Lead in Your Home
