About HUD

U.S. Department of Housing and Urban Development

Team Derrick Coates – eXp Realty has many years of experience selling HUD homes. If you are looking for a great home value or an investment opportunity you might want to consider buying a HUD home. A HUD home is a property that was foreclosed by the U.S. Department of Housing and Urban Development (HUD) after the owner defaulted on an FHA loan. HUD then sells these homes to recover its losses and provide affordable housing opportunities to you – the public.

We will explain what a HUD home is, how to find one, and how to buy one. We will also discuss some of the benefits and challenges of buying a HUD home, and some tips to make the process easier.

What Is A HUD Home?

A HUD home is a type of foreclosed property that is up for resale. When someone uses an FHA loan to purchase their home and fails to repay it, HUD takes the property back after it has gone into foreclosure. They then offer to put the house on the market for resale to recover some or all of the loss of the foreclosure claim.

HUD homes are residential properties that were once owned by homeowners who financed their mortgages through the Federal Housing Administration (FHA), a U.S. government agency that aims to promote home ownership by offering mortgages and mortgage insurance.

HUD homes can be single-family homes, condos, townhouses, or multifamily properties with up to four units. They can be found in various locations and conditions, from urban areas to rural communities, and from move-in ready to fixer-uppers.

How To Find A HUD Home?

HUD homes are listed on conventional real estate websites and can be found at hudhomestore.com, where you can search for HUD properties by state or ZIP code. You can also filter your search by price range, property type, number of bedrooms and bathrooms, and other criteria.

You can also find HUD homes by contacting a HUD registered brokerage/agent like Derrick Coates. These agents can help you access the listings, schedule showings, submit bids, and complete the paperwork. You can find a list of HUD-registered agents on hudhomestore.com as well.

How To Buy A HUD Home?

HUD homes are sold through an auction process: Once the HUD listing period deadline is past and bids are in, HUD reviews its options. If none of the bids is deemed acceptable (usually because it’s too low), HUD extends the offer period and/or lowers the asking price until a match is made.

The bidding process varies depending on whether the property is classified as exclusive or extended. Exclusive period properties are only available to owner-occupants (people who plan to live in the home for at least one year). Extended properties are open to all buyers, including investors.

To bid on a HUD home, you need to have a preapproval letter from a lender or proof of funds if you are paying cash. You also need to work with a HUD-registered broker/agent – like Team Derrick Coates of eXp Realty – who can submit your bid online through hudhomestore.com. You can only submit one bid per property per day.

If your bid is accepted, you will be notified by your agent and given a deadline to sign a contract and pay an earnest money deposit (usually 1% of the purchase price). You will also have a chance to inspect the property and secure financing before closing the deal.

Benefits Of Buying A HUD Home

Buying a HUD home can have some advantages over buying a regular home. Some of these benefits include:

  • Lower price: HUD homes are often priced below market value because HUD wants to sell them quickly and recoup its losses. This means you might be able to get more house for your money or save some cash for repairs or upgrades.
  • Special incentives: HUD offers some special programs and discounts for certain buyers of HUD homes. For example, the Good Neighbor Next Door program offers 50% off the list price of select HUD homes in revitalization areas to eligible public servants such as teachers, police officers, firefighters, and emergency medical technicians. The FHA 203(k) loan program allows buyers to finance both the purchase and renovation of a HUD home with one loan.
  • FHA financing: Because HUD homes were originally financed with FHA loans, they are eligible for FHA financing again. This means you might be able to qualify for a low down payment, lower credit score requirements, and lower interest rates than conventional loans.
  • Variety: HUD homes come in different shapes and sizes, from single-family homes to multifamily properties. You might be able to find your dream home or an investment opportunity.

Contact your HUD registered agent, Derrick Coates of eXp Realty (HUD registered brokerage) for more info or to tour some of the best home buying opportunities!! Call Derrick and his team at 520-456-4554 or email us at info@teamdcrealty.com today!

For HUD Handbooks, Forms and Publications and other information, visit the official website: https://www.hud.gov/program_offices/administration/handbks_forms