You may have heard about HUD homes or seen HUD homes on listings but are unsure about how to proceed. The United States Department of Housing and Urban Development acquires homes if an FHA (Federal Housing Administration) is the primary lesser on the mortgage.
During a foreclosure, the ownership of the property reverts to HUD, hence the HUD listings you so commonly find on the web. This means that the US government now holds the property and you can take advantage of this opportunity to find yourself a great home and save money at the same time.
HUD homes are sold in whatever condition they are left in and one of the things you can expect from buying a property is that the market value will be extremely fair, since it considers the state of the home and the location. If you are looking for financing, you need the help of a bank or if you are fortunate enough to afford to pay in cash, you are in luck.
HUD homes for sale initially go through a priority buying period for people like who are looking to purchase their first home. If you qualify, you will be able to get a home at a fair market price. You may also apply for the FHA’s insured mortgages or loan rehabilitation programs to help you acquire the home of your dreams. After the priority buying period, anyone can apply for a HUD home, including those looking to invest and sell.
Special Discounts for FHA or HUD Owned Homes
One of the best parts of looking into acquiring a HUD home is the special consideration they give to certain parties, such as Hurricane Katrina evacuees. Meeting the eligibility means you may acquire the home at a discounted price. Since the homes are government-owned, like student loans, strict eligibility requirements are followed. But the discounts you may qualify for are well worth the scrutiny.
Discounted homes are also available for:
• Civil servants such as teachers, firefighters, EMTs or law enforcement personnel (especially in Revitalization Areas), with up to 50% off on fair market price
• Single parent families
• Local government offices
• Non-government organizations
Although you may have to meet certain criteria to be able to own a HUD home, it is a viable opportunity that you should not dismiss out of hand. The benefits, and potential savings, are gigantic.
Check out the Asset Control Area program, where homes can be purchases for a minimum discount of 50% of the property value or where certain participants can purchase a home for as low as a $100. The Good Neighbor Next Door program also offers similar benefits to civil professionals. And don’t forget the financial assistance from the FHA or qualified lenders that can help you hold down and pay off a mortgage. All you have to do is check the listings.
One way you can find out what you are qualified for is to visit the portal.hud.gov to check out available listings in your area. Who knows? You may find your dream home with a simple click of a button!