How to Find a HUD Home

Do to hard economic times a good option for buying a new home is buying a HUD home. A HUD home is a residential property acquired by HUD because of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Since these are government owned properties, they can offer them at a discount.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Real estate agent
• Computer

1. 
    

   The first thing you need is the cash. You can also get pre- qualified for a loan. If you have the cash or are qualified, you may buy a HUD Home. HUD Homes are first offered to owner-occupied buyers. These people are purchasing a HUD home as their primary residence. After the priority period is over and the house has not been sold, it is offered to investors as well.

2. 
    

   All properties available for purchase by the public are put on the internet for sale sites, which are maintained by management companies that work for HUD. You need to find a real estate broker registered with HUD they are the only agents that can submit an offer to HUD on your behalf. HUD will pay the real estate agents commission if it is stated in the contract

3. 
    

   Look for special offers from HUD. They have certain areas where properties are available at a reduced price. HUD offers reduced prices on homes for teachers, firefighters, law enforcement officers, and emergency medical technicians. HUD does not offer financing but you can get financing through FHA.

Tips & Warnings

• Search the internet for listings
• Find a HUD approved real estate broker

Resources

• Get an FHA Loan

[jkopinion]

on 5/27/2009 Good time to buy. Thanks for the 5* tips.

[Lancec]

on 5/25/2009 Sounds like a great idea when I am looking for my first home! Thanks for the info!