There is a brand new complete HUD homes Buyer’s Guide out there entitled ‘HUD HOMES FOR SALE’, which I have been fortunate enough to be called upon to review. Whatever the reason, a market can only handle so many foreclosure listings at any given time. With our service, you’ll be able to find all kinds of discount foreclosures, including homes available from HUD and FHA, just by searching for foreclosures in your area.
The minimum down payment on a HUD home will be determined by the financing employed – for example, you might be able to put down just 3% via a conventional loan, or 3.5% if you go the FHA route. HUD homes are properties that were insured by FHA (the Federal Housing Administration) and the owner could no longer make payments on the property (due to medical issues, job loss or other factors).
The listings are free since these homes are owned by the US government. For example, your winning bid on a HUD home for sale was $100,000 and you asked HUD to pay 5%($5,000) of your closing costs. In my case, the asking price was equal to the real estate tax assessment (not the taxable value), so I used that value as my guide to bidding and actually bid slightly above the asking price.
Owner Occupant: Eligible owner occupants are individuals who have not purchased a FHA foreclosure within the past two (2) years. Government foreclosures are those that have been insured by the government through the HUD (US State Housing and Urban Development) and VA (Veterans Affairs) programs.
Each bid must be submitted by a licensed broker or agent, so be sure to find the right Realtor to assist you in this process. HUD will pay up to 3% of the purchase price in closing costs that are considered to be reasonable and customary in the jurisdiction where the property is located.