Buying a HUD Foreclosure Can Be A Good Option!

In today’s market we know that foreclosures may be found in any neighborhood, often priced well below the market value.

Great Deals on HUD Homes

Housing markets change from one area to the nex but regardless of where you find HUD foreclosures chances are excellent that you will be able to find them for far less than the local market prices.  That obviously translates into savings and good deals at any time when the economy is tight and dollars don’t seem to be stretching as far as they did at one time.

HUD Forclosures Homes are not BAD!

In the past, there have been poor views of HUD foreclosure sales, but new home buyers are finding out that homes sold in foreclosures are not all BAD homes, or in total disrepair.  We urge you to do due diligence on any home you purchase, but often HUD foreclosures could be move in ready, and if you are handy and able to handle some of the minor repairs, or get an FHA 203K Renovation Loan, the discounts may be just the deal for you.

If you would like to see available homes in your area click HERE and you will be taken to the HUD Homestore website.  Before taking a look at the site, here are some key information to know:

  • IN = Insured, these homes are move in ready.
  • IE = Insured with Escrow, the home is near move in ready but needs some repairs prior to being FHA qualified.  Consider the FHA 203K renovation loan on these.
  • UI = Uninsured, a great deal of work will need to be done to this home in order to bring it up to minimal standards.  Theres are usually very low priced homes but move forward with caution.  You will likely need the FHA 203k renovation loan with these homes.

HUD Foreclosures:  Frequently Asked Questions:

  1. Do I need a Realtor?  Yes you do.  Contact a real estate professional who is registered to bid with HUD.
  2. What are my financing options in HUD Foreclosures?  Cash, conventional home loans, Homestyle Conventional Loans, FHA financing or the FHA 203K Renovation loan program.
  3. Is there a minimum down payment required?  Yes, 3.5% is the lowest available.
  4. What is HUD?  The U.S. Department of Housing and Urban Development.
  5. Do I need need an appraisal?  No, HUD conducts an appraisal before listing the home.  However, an appraisal will be necessary for Conventional loans and an FHA 203k mortgage.
  6. Can I have the property re-appraised and lower the price of the home?  No, a 2nd appraisal can’t be ordered just to support a purchase price that is higher than the value on the current appraisal.
  7. Does HUD give money for repairs to the property?  No, but a homebuyer may want to utilize an FHA 203k renovation home loan to finance the repairs on the property.
  8. Can I make repairs to the property if needed prior to purchase?  No, repairs should be only performed on a property AFTER the new owner has taken possession.
  9. Do owner occupants have a priority in bidding?  Yes, there is an initial owner-occupant period set aside at the very beginning of the bid process.