Buying HUD Homes
 
As a HUD approved listing broker, many of our listings are HUD Homes.  Should you be interested in one of our HUD listings, you may have many questions, as the HUD Home buying process is a little different from other real estate transactions.  Below, you will find the answers to some frequently asked questions.  Should you have additional questions or want to schedule a showing appointment, you can contact us 817-846-4669 (Texas) and 720-270-2920 (Colorado), or toll-free at  888-363-3705 (Texas, Colorado and Florida). 
 
AGENTS click here for HUD training and agent specific info.
 

 
  What is a HUD Home:
 
A HUD Home is a 1-4 unit residential property acquired by HUD as a result of an FHA-Insured mortgage claim.
 
  Who can buy a HUD Home:
 
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner-occupants, unsold properties are available to all buyers, including investors.  Owner-occupants must not have purchased a HUD Home within the past 24 months, and must commit to living in the home for the next 12 months.
 
  Will HUD pay for any repairs:
 
No.  All HUD Homes are sold AS IS.  HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.  One option to deal with repair issues is a 203K FHA loan - ask you lender or real estate professional for more info and/or click HERE.
 
  Will HUD pay for title insurance:
 
No.  Homebuyer's may purchase their own title insurance from the title company of their choice.
 
  Does HUD offer any financing options:
 
No.  Homebuyer's must pay cash or arrange their own financing with the lender of their choice.  To bid on a HUD Home, homebuyers must show proof of funds if paying cash (letter form bank), or be pre-approved for financing (pre-approval letter from their lender).
 
  Can I increase our chances to be the winning bidder if I bid over the list price:
 
Yes.  The winning bid will be the bid that yields the highest "NET" to HUD, so the more you bid, the better you chances.  However, HUD will not allow you to finance any amount over the initial list price (applicable to FHA financing).  If your winning bid is over the initial list price, you will have to pay the overage at closing.
 
  How are HUD Homes priced:
   
The initial list price for all HUD homes is based on a current "AS IS" FHA appraisal.  If market conditions change over time before the home sells, HUD may choose to lower the list price below the appraised value.
 
  Can I get an FHA loan based on a second/new FHA appraisal:
   
No.  HUD will not allow a second FHA appraisal.  If you finance with an FHA loan, your lender must use the existing FHA appraisal that was done when the home was listed.  NOTE: Since the existing FHA appraisal is used for a new FHA loan, you save the cost of a second appraisal.  If you are financing with a conventional loan, your lender will order a conventional appraisal - an FHA appraisal can not be used for a conventional loan.
 
  Where can I learn about available HUD Homes:
   
All available HUD Homes are listed on www.HUDHomestore.com.  Click HERE for info on how to use the site.
 
  How do I submit a bid on a HUD Home:
   
You cannot bid on a HUD Home yourself.  Bids must be submitted by a HUD-registered selling broker/agent.  If you find a HUD Home that you are interested in, you can contact the listing broker to schedule a showing appointment and submit a bid for you, or you can use any other HUD-registered broker/agent of your choice.  Click HERE to find a HUD-registered selling broker in your area.
 
  Where can I learn more about HUD Homes:
   
Click HERE for more FAQs;  HERE for HUD Home Store FAQs;  and HERE to visit HUD's website.  More info is also available at www.MMREM.com.
 
 
 
 
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