| Buying HUD Homes |
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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). |
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AGENTS click here
for HUD training and agent specific info. |
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What is a HUD
Home: |
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| A HUD Home is a 1-4 unit
residential property acquired by HUD as a result of an
FHA-Insured mortgage claim. |
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Who can buy a
HUD Home: |
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| 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. |
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Will HUD pay
for any repairs: |
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| 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. |
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Will HUD pay
for title insurance: |
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| No. Homebuyer's may
purchase their own title insurance from the title
company of their choice. |
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Does HUD offer
any financing options: |
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| 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). |
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Can I increase
our chances to be the winning bidder if I bid
over the list price: |
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| 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. |
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How are HUD
Homes priced: |
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| 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. |
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Can I get an
FHA loan based on a second/new FHA appraisal: |
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| 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. |
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Where can I
learn about available HUD Homes: |
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| All available HUD Homes are
listed on
www.HUDHomestore.com. Click
HERE for info on how to use the site. |
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How do I submit
a bid on a HUD Home: |
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| 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. |
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Where can I
learn more about HUD Homes: |
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| 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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