HUD Homes and How You Can Purchase One

A HUD Home is acquired by the US Department of Housing and Urban Development (HUD) due to a foreclosure on a home with a loan insured by the Federal Housing Administration (FHA). When the home is  foreclosed on the lender files a claim for the balance due on the mortgage. The FHA pays the claim, who in turns transfers the ownership of the home to HUD, and sells the home.

If you are interested in purchasing a HUD home there are some things you need to know about the whole process:

• You must use a HUD registered real estate broker


• You must be pre-approved for a mortgage upon acknowledgement of a bid


• Owner-occupied bidders receive first priority


• HUD offers 3 types of properties: FHA insurable homes, FHA insurable homes with a repair escrow and homes that are not insurable with an FHA loan.


• You do not have to finance a HUD home with an FHA loan

If HUD Homes interest you, give me a call today to view all my HUD listings and talk about how I can serve you find the right home.

Information was provided by Danene Strand (NMLS# 442493) at Veritas Funding.