Modular Vs. HUD Homes, What’s The Difference?

hud homesHUD homes are foreclosure homes owned by the government as a result of repossession. HUD homes result when the foreclosed home was initially purchased with a loan insured by the Federal Housing Administration (FHA). The department was established on September 9, 1965, when Lyndon B. Johnson signed the Department of Housing and Urban Development Act 1 into law.

Based on a sample of Rocket Mortgage clients who met qualifying approval criteria and specific loan requirements at the time of application. They are for first time home buyers, and these type of loans do not allow for someone that is trying to capitalize off such great deals.

Potential buyers must qualify for a mortgage or pay cash to buy a HUD home. It helps to specifically work with an agent who has experience with HUD homes, but this isn’t a necessity. By placing a bid without a lenders’ approval letter, the buyers creates an opportunity to lose their earnest money.hud homes

Extensions are normally granted when a private lender has agreed to finance the property but needs more time to process the loan application. HUD homes are residential properties containing one to four units. Please note that is not affiliated with the U.S. Department of Housing and Urban Development.

On the Internet, many web sites offer free foreclosure listings, including some dedicated to listings of HUD houses. By the time the HUD homes for sale go on the market, the government owns them. Check you local phone book for HUD registered real estate agents.