Krch Realty

HUD Homes: The Basics

by Cindy Brenner ~S.0174239 01/16/2022


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: The Basics

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.

Incentives to Buy HUD Homes

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.

Buying a HUD Home

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.

About the Author
Author

Cindy Brenner ~S.0174239

I have personally been in Real Estate since 2002, taking time to open a Loan Document Preparation Service from 2003 to 2008, preparing and signing loan documents for property improvement loans on a nationwide level. I am now working in the office of Krch Realty, helping people obtain their goals by either selling their homes, or purchasing their dream homes! It is very exciting to be in the position to help people with whatever their needs may be! I also have the professional knowledge of the entire Krch agency behind me, so if I do not have the answer to your question, I can get it for you!

Nothing gets done without an action plan. So let's get going!