United States Department Of Housing And Urban Development

hud homesHUD homes are FHA insured mortgage loans that go into foreclosure. The newly dubbed real estate owned (REO)” properties are then sold to the public and non-profit institutions by the government entity at affordable prices. If you want to purchase a home, the amount of money you can borrow will be based on the comparable price of homes in the area.

The FHA 203(k) Rehabilitation Mortgage will help you with the larger renovations, but you will pay more for it. And, the total loan, based on the value of the home with renovations, can’t exceed the FHA loan amounts for your area. Homes in bank foreclosure are acquired more easily than government foreclosures, and can be purchased directly from the lenders, who can also arrange buyer-friendly financing.

Your Century 21 Riverpointe agent can help you find a mortgage lender experienced in HUD home financing to make the process smooth and painless. Purchasing a foreclosure property as an investment can be a great idea, assuming you’ve done ample research into your local market.

If a homeowner defaults on mortgages backed by the Federal Housing Administration (FHA), commonly known as FHA loans , the foreclosed-upon property is repossessed by the HUD instead of a bank. Your real estate agent, who is your uncle, has never sold a HUD home foreclosure.

If you’re looking to purchase a new home you may have come across properties listed by HUD. Housing and Urban Development pays the real estate professional for the commission if included in the contract. You can actually search for realtors specializing in HUD homes by state, city, county and zip.hud homes