HUD Homes

The U.S. Department of Housing and Urban Development (HUD) acquires homes through foreclosure and offers them for quick sale on the real estate market. Though anyone with the cash or mortgage approval can buy a HUD home, there are several groups of people who are especially drawn to them. Low- to moderate-income people as well as those looking for potential investment property seek out the possibility of buying a HUD home.

HUD restricts the sale of some of its homes for owner-occupants only. This means that HUD prefers selling the house to a family or individual who plans on living in the property for at least one year. In this way, HUD can provide a chance for lower income people to buy a home they otherwise could not afford, rather than selling to an investor for quick profit.

HUD Homes are Sold "As Is"

A resident who has gone into default on his or her loan may not have been able to maintain the property, and HUD homes will generally need some fixing up. A thorough inspection is recommended, along with several estimates of how much it will cost to make necessary repairs. HUD may include allowances for repairs, appraisal, and even closing costs in the price of the house.

When looking into purchasing a HUD home, home buyers will need to speak to an approved HUD lender. These lenders specialize in processing loans specifically to buy HUD homes. A licensed and registered HUD broker or realty company can be used to obtain a list of HUD homes in the area up for sale. Complete lists of HUD homes available in markets all over the country are available online, along with resources for financing.