If you're searching for a new home, you may have come across references to Housing and Urban Development (HUD) homes. HUD offers government mortgage insurance programs and loans. But what is a HUD home, exactly?
Here are the basics to help you with your home search:
HUD homes are foreclosed properties reclaimed by the government. When a buyer uses a Federal Housing Administration (FHA) loan to buy a residential property, they risk losing the property entirely if they cannot make their mortgage payments. The government then re-sells the homes at a low price to make up for the money spent paying off the rest of the mortgage.
Every HUD house gets an appraisal to determine the best price, but they are still often below market value. This makes them attractive options for first-time homebuyers, flippers or anybody looking for a good deal.
The HUD agency offers many incentives to homebuyers to encourage the sale of these foreclosed properties. These incentives include grants, vouchers and special buyer programs to assist with mortgage payments, down payments and more. Buyers with careers in public service or who work with nonprofit organizations are also eligible for some of these special incentives.
It's important to note that the process for buying a HUD home differs from other homes. You won't find listings for these properties in the usual places like MLS or search portal sites. Instead, you can search and browse HUD listings on their website.
HUD homes are different from other properties in that you have to buy them at auction. You need a licensed real estate agent to represent you, to bid on and purchase a property.
Is a HUD property right for you? There are many factors to consider, but knowing the basics will help you make your decision. Consult a real estate professional for advice on the best way to proceed with your home search.
Marilyn Mayberry has had the honor and privilege of engaging in one of the most exciting careers imaginable. She has marketed the American dream of home ownership for over 40 years. Marilyn is the Associate Broker for her own boutique brokerage Real Estate Today LLC in Farmington Hills. Her company offers a complete line of residential and commercial services to buyers and sellers.
Buying or selling real estate is probably one of the most important decisions anyone will make in a lifetime. Marilyn’s passion for the real estate business assures that the transaction will be handled with the highest degree of professionalism. This philosophy has allowed her to build a community of lifelong relationships.
