What is a HUD Home?
Flickr: Apple Realty/Creative Commons
Often the question is asked, what is a Hud Home? A Hud Home is a residential property that has 1 to 4 units and is held by the US Department of Housing and Urban Development (HUD). When the previous owner defaulted on their on their FHA (Federal Housing Administration) insured mortgage, the HUD assumes ownership of the foreclosed home.
Can I Buy a HUD house?
You can absolutely buy a HUD house. If you have enough money saved up and can get approved for a loan you are eligible to buy a HUD house. HUD houses are sold online via auction and there is a great website that allows you to look through the inventory here.
Is a HUD Home a Good Purchase?
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If you find a HUD home that you want to purchase, contact a HUD approved real estate agent to set up a tour of the property. Also, get the property inspected by a professional as all HUD homes are sold “as is” and the structural integrity of the house is not guaranteed. It is also important to note that preference is given to prospective home buyers who plan to live in the house rather than investors. If you aren’s sure if you can afford to purchase a HUD home there is help available. HUD may pay up to 3% of the closing costs and they can also pay the escrow fee.