HUDHomestore and Buying HUD Homes in 2017

hudhomestore

The HUDHomeStore is the listing site for HUD Homes in 2017. You can find available HUD real estate owned single-family properties. The HUDHomestore website provides the public, mortgage professionals, government agencies and nonprofit organizations a centralized location to search the inventory of HUD Homes for sale. In addition, registered real estate brokers and other organizations can place bids on behalf of their clients to purchase a HUD property. The HUDHomeStore also includes tons of user-friendly features providing advice as well as guidance for consumers on the home buying process. The HUD Home program is a great way to buy a property that you want to restore and revamp to make it all your own.

 

Get Approved for a HUD Home

 

HUDHomestore

 

Finding a HUD Home is a fairly simple process. The HUDHomestore, which is a government site, allows you to search available HUD Homes by city, state, county or even by zip code. You will need to enlist the help of a licensed real estate agent that’s listed with HUD to be able to bid on properties. The HUDHomestore is the only place to find the most up to date current available HUD Homes for sale.

 

HUD Homes

 

What is HUD housing? HUD homes are a by-product of the FHA program. We’ve all heard of FHA mortgages, but many do not realize that the FHA is not a lender. Instead, the FHA only insures the home. HUD homes are typically a 1-to-4 unit residential property obtained 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 losses on the foreclosure claim. These homes typically need some sort of work or repair done to them. Those repairs can sometimes be minor like new flooring to major repairs like roofing or foundation work.

 

 

Who is eligible to buy HUD Homes

 

Anyone who has the cash or can qualify for a loan or a mortgage can buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers. Following the priority period for owner occupants, unsold properties are available to all buyers, including investors. HUD homes can be incredible opportunity for investors to get an excellent deal on a property. HUD does however typically give priority to owner occupant buyers over investors but once you figure out how the HUD system works it’s easy to submit a bid and buy HUD Homes.

 

HUDHomestore Bidding Secrets

 

Of course you always want to try and have an edge when it comes to bidding on the HUDHomestore. One bidding secret to remember is that HUD will continue to reduce bidding prices on homes that are still available. A listing that has been reduced once already, HUD will reduce the price by 10% of the current list price. Once that happens they will accept the highest offer in the bidding period if it equals at least 85% of the list price. That means 85% of the already reduced list price. If a home has been reduced twice HUD will reduce again by 15% and will accept the highest bid that’s at least 70% of the current list price. It’s easy to see how you can walk away with a HUD Home for next to nothing if you know what you’re doing.

 

Is a Home Inspection Required

 

HUD provides NO warranty as to the condition of its properties and will not pay for the repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential home buyer to get an inspection from a licensed professional home inspector prior to submitting an offer to purchase.

If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in a FHA 203K loan. When a home buyer wants to purchase a house in need of repair or modernization, the home buyer usually has to obtain financing first to purchase the dwelling. Also, the additional financing to do the rehab construction and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing involves relatively high interest rates and short amortization periods. The FHA 203K loan allows you to borrow the money plus up to an additional $35,000 for any repairs needed for the home.

 

HUDHomestore Financing

 

HUD does not provide financing or lending to buyers of HUD Homes. Prior to making an offer on a home you find on the HUDHomestore, you’ll need to obtain pre-approval for the loan. If you have the necessary available cash, alternatively you may buy a HUD Home. While HUD does not provide direct financing for the purchase of a HUD Home, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

 

Are there any special HUD Home buyers programs?

 

Yes. HUD has three different types of programs available.

One Dollar Home Program – This program is for local Municipalities who wish to purchase properties and offer them to low-Income families in their respective communities. This program is available on HUD homes that are priced up to $25,000 and have been on the market for a minimum of 180 days. Click here for more information

Non-Profit Program – The non-profit program is offered by FHA to faith based organizations and other HUD-approved nonprofit organizations. The program offers up to a 30% discount on homes listed on the HUDHomestore to resell to low income and first time buyers. For more information click here

Good Neighbor Next Door – This HUD program offers up to 50% off the price listed on the HUDHomestore website for law enforcement, teachers, EMT’s and Firefighters. The buyer must live in the property for a period of at least 36 months. Be sure to read our article so you can get more information on the HUD Good Neighbor Next Door program.

 

Search the HUDHomestore with our HUD approved lenders

 

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