What is a HUD Home?

The United States Department of Housing & Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance against default on home mortgages.  If the payments are not made on an FHA loan, the mortgagee (your bank or Mortgage company) forecloses, then files an FHA insurance claim and gives title to HUD.  At this point the home becomes a HUD owned home and listed at the appraised value.

Who Can Buy a HUD Home?

Any qualified purchaser can offer to buy a HUD home.  A prospective buyer must have a letter, written on the stationary of a mortgage lender, stating that they have been pre-qualified for the loan amount. 

What is the 50% discount to Teachers, Firefighters, Police and EMT's about?

You must be employed as a full-time k-12 teacher, firefighter, sworn law enforcement officer or emergency medical technician in good standing with your employer.  Properties are sold exclusively over the Internet, in Revitalization Areas.  You must agree to live in the property for 3 years and cannot own another home at time of closing.  These homes can be purchased for a 50% discount, for example a house that is listed for $100,000, a teacher can buy for $50,000.  To make a HUD home even more affordable, you can apply for an FHA-insured mortgage with a down payment of only $100 and you may finance all the closing costs.

What is a HUD Revitalization Area?

These are areas in need of economic & community development and where there is already a strong commitment by the local governments.  There are programs set up by the state and local governments for additional assistance to encourage families to move into these areas.  If the home you are interested in is also in need of repair, you can acquire a loan for both the purchase of the home and the cost of repairs and pay one single payment for both.

Can you visit a HUD home before you bid?

Absolutely, you need the assistance of a registered HUD real estate agent that has a master key for entry.