This type of home is one that has been foreclosed and the new homeowner may be eligible to purchase it using an FHA loan, which stands for Federal Housing Administration. The term HUD means Department of Housing and Urban Development. This department is responsible for providing affordable housing for those who want to become homeowners. The process of selling this foreclosed property is not like regular real estate deals and foreclosed properties. HUD takes the home if the FHA has approved the loan on it and it must be a foreclosed property.
HUD will use an asset management company to sell the homes for them. The potential home buyer will have to work with a real estate agent that is HUD registered. After have a property inspection conducted you can either place a sealed bid on the home or look for another home. If you receive notice that your bid was accepted, you will have settlement time. This is the time you have to purchase the home and close the deal. Before you bid on the home make sure that you are eligible for some home loan unless you can afford to pay cash.
Advantages of HUD homes for sale
Financial help – if you are eligible for an FHA loan, they have many different programs so you may be able to get some capital to buy the home. If the HUD home needs repairs check to see if you qualify for the FHA Rehabilitation Loan. This loan will provide the money needed for fixing and repairing your new home. Check the criteria for getting an FDA loan before buying a HUD home and if you qualify you can complete the process of getting a loan. If you are an EMT, legal officer, or teacher, it may be simple to get a HUD home because they offer some discounts to people in these careers. HUD may also pay up to three percent on your closing costs but this may only for those that are considered low-income. Your escrow fees may also be paid but it depends on the situation.
Properties available – there are many HUD properties on the market so you will have several choices of homes for sale. Some are left in poor condition while many are in good condition
Homeowners – when a person is buying a HUD home and plan to live there, they will generally have an advantage over one who wants the property as an investment. The homeowner is given first priority because HUD requires the buyer to stay in the home at least a year. When buying HUD homes for sale for investment purposes they can bid on the home after it has been listed for thirty days.
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