You may have seen on our website or social media accounts posting about “HUD Homes”. Are you curious what they are or how they are different from the other homes we sell? We’ll explain:
What are they?
A U.S. Department of Housing and Urban Development (HUD) home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an U.S. Federal
Housing Administration (FHA) insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. A realtor, registered to bid with HUD, is required to make a bid on a HUD Home.
The U.S. Department of Housing and Urban Development was created in 1965 and has been running ever since. HUD's mission is to create strong, sustainable, inclusive communities
and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build
inclusive and sustainable communities free from discrimination.
Why can they be a great purchase?
Since the government owns these foreclosed homes, they are priced to move fast, so they no longer have to own them.. HUD homes also offers incentives
to buyers that can make the purchase decision easier. For example, the HUD “Good Neighbor” program
offers HUD homes in revitalizing areas at a 50% discount to community workers (e.g., teachers, police officers, firefighters, and EMS personnel) who plan to live in the property for at least 36 months. Other benefits include low down-payments and preference
to owner-occupants who intend to live in the home for at least a year. Anyone who has the required cash or can qualify for a loan (subject to certain restrictions) may buy a HUD Home.
If you are interested in buying a HUD home, contact us today. We are registered to bid on HUD homes!