HUD Homes: The Biggest Deal You Don't Know About
Steps to Remember Before Buying a HUD Home
Buying a HUD home is certainly one of the best real
estate deals available. HUD homes are actually properties owned by HUD, the Department of Housing
and Urban Development. These are homes where the owner failed to pay an FHA backed
loan that resulted in foreclosure. These properties are now back on the market
for sale, often at a great price.
However, before buying a HUD home here
are three very important steps:
Find an experienced Realtor. Purchasing HUD homes involves a lot of
details; rules for investors vs home owners. When bidding on a HUD home
homeowners that plan on occupying the home will have a slight advantage or real
estate investors. An experienced Realtor
can guide you through the bidding process.
2. Understand Your Financing Options. One of the most economical ways to
purchase a HUD home is through the $100 down program. Conventional loans can
also be used as well as 203-B programs or the 203k loans.
3. Properties sold AS IS. Unlike typical homes for sale on the
market where you may have the opportunity to negotiate for repairs cost. This is
not the case with HUD homes. What you see is what you get. So do your homework,
make a licensed contractor part of your team and make sure to get a honest
estimate on repair costs. Some HUD homes only require minor cosmetic repairs.
Other properties could have extensive and perhaps hidden repairs.