3 Things to Know Before Purchasing a HUD Home
July 13, 2018 |
The U.S. Department of Housing and Urban Development (HUD) has “HUD Homes” which is a term loosely applied to a single family home or other types of residence that are purchased by a mortgage that is backed by the Federal Housing Administration (FHA).
The Huntley Team is certified to sell HUD Homes, which is not true of all real estate companies. Before you buy a HUD Home make sure you are aware of the following:
The key word to remember is foreclosure. Often, a foreclosed home may need some TLC. But, just as often, you can get them at a steal of a price. So, remember a HUD home may be cheaper but it also may need more work than other homes on the market.
HUD homes have no restrictions on who can purchase them. As long as someone has the required cash, or they can qualify for a loan, they are able to buy the home. HUD Homes will be first offered to owner-occupant purchases, but if the home remains unsold
the market will open to all buyers, including investors.
Inspections of HUD homes are highly encouraged. HUD does not have to warrant the condition of its properties and will not pay for the correction of any faults of repairs. This is why inspections are highly encouraged by potential buyers. Just as with
purchasing a non-HUD home, you’ll want to know the condition of the property you are buying and if you will need to invest extra money into its maintenance for a satisfactory living.