If you are searching for HUD homes or HUD store you can log in on the HUD Homestore website but you will need to get approved first for the same.
HUD homes can be purchased against any type of mortgage. FHA loans are the most popular type of mortgages used to purchase a HUD home from the above-mentioned website.
Knowing the HUD home
The HUD Homestore is a government website operated by HUD (the department of housing and home development). It lists all the HUD homes for sale. On this website, you can locate and bid on HUD properties, but only through a real estate agent.
HUD home is one that was foreclosed on by a borrower who had an FHA loan. HUD becomes the new owner once the FHA loan is foreclosed. The house is then listed for sale at HUD Homestore.com. HUD foreclosure is generally a great bargain for home buyers.
HUD prefers to sell their home to owner-occupied borrowers.
An owner-occupied borrower is someone willing to live in the house as a primary residence. At the initial stage, HUD homes are available only to owner-occupied borrowers. If it does not sell after some time, it is offered to anyone including investors.
How to look for a property on the HUD Homestore site?
While surfing the HUD Homestore website, you will come across a map of the US. Click on your state and then type in an address or you may also search by the price, beds, baths, etc. Property Buyer is required to sign up for an account on the HUD Homestore website. Thereafter, features like alerts and saved searches can be set by the buyers for further convenience.
To have a look at the home, which you found on the HUD Homestore website, a real estate agent can arrange for the showing of the same to you.
How an investor can buy a property through a HUD home store website?
HUD properties are offered initially to owner-occupants. After some time, the property is available for investors to bid. This is the time when an investor can buy a property through the site.
Are there any special HUD buyers programs available?
There are three different programs available for HUD buyers, namely:-
One dollar home program
This program is available for local governments who wish to purchase properties and offer them to low-income families in their community. HUD houses that have been priced up to $25000 and have been on the market for over 180 days are covered under this program.
Good neighbor next door
Under this program, 50% off on the price listed on the HUD Homestore website is rendered to the officers of the law, teachers, EMT’s and firefighters. The prerequisite is that the buyer has to reside in the property for at least 36 months.
It is offered by the FHA to faith-based organizations like churches. 30% discount on homes listed is offered on the Homestore on these properties to resell them to low income and first-time buyers.
Benefits of Buying a HUD Home
A good deal on the price of HUD property is not the only benefit which a buyer gets, as the list continues with the below-listed benefits:-
- HUD loan program available
- Low earnest money deposits ($500-$1000)
- Preference is given to buyers who are purchasing the property as a primary residence over real estate investors
- All the properties available can be viewed on the website
- There is a facility of up to 3% of your down payment paid for
- HUD paid closing cost up to 5% of the purchase amount
- HUD homes are already appraised by an FHA approved appraiser. So the chances of faster closing are there if you are using an FHA loan.
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