HOW TO BUY A HUD HOME

What is a "HUD Home"?
A HUD Home is a property that was previously financed with an FHA insured mortgage and where the owner has defaulted on the loan. The lender, then, forecloses on the home. FHA pays the lender what is owed; and the lender transfers ownership of the home to FHA/HUD. Then, HUD sells it at market value.

Who can buy a HUD Home? 
Anyone who has the cash or can qualify for a mortgage can buy a HUD Home.

Is it true I can get a HUD Home for a dollar?
No. HUD sells homes at market value - which means that the price is set based on the price of similar homes sold in the area.

If the HUD Home needs repairs, will HUD make them?
HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. Buyers are encouraged to get the home professionally inspected.  Houses built before 1978 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.

How do I buy a HUD home?
HUD Homes are sold through Participating Real Estate Agents.
Start by finding a HUD participating real estate agent. Your real estate agent must submit your bid for you. The real estate agent's commissions are usually paid by HUD.

How can I find out what HUD Homes are for sale?
Right here! The list of HUD Homes for sale is updated daily. If you see one that interests you, contact one of the HUD participating real estate agents in your area. They can help you from there.

How can I get a loan to buy a HUD Home?
HUD does not make loans directly. You can contact a HUD approved lender, who will take you through the steps and actually make the loan.

Can I buy a HUD Home as an investment?
Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

GNND-Government Next Door Program
The Neighbor Next Door initiatives are a collection of FHA's home sales programs designed to help communities and promote homeownership. Help a neighborhood. Buy a home through HUD's Good Neighbor Next Door initiative designed to encourage renewal of revitalization areas by providing law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase homes in these communities. HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties.

Local Governments!
HUD has a special sales program under which Local Governments may purchase certain properties at one dollar ($1.00). Click here for more information on this program.