How to Qualify for a HUD House
When the Federal Housing Administration (FHA) forecloses on a property, that property is subject to being transferred to the United States Department of Housing and Urban Development (HUD) and subsequently sold to the public. This action allows HUD to recover the FHA's losses from the foreclosure action. Anyone can be a potential buyers of these properties provided they meet a minimal set of qualifications.
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Instructions
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Contact your lender to determine your loan eligibility. To purchase a HUD house you must either have cash on hand or be able to qualify for a loan. According to the Department of Housing almost anyone can qualify for a HUD house provided they meet this basic criteria.
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Find the HUD house of your choice. The Department of Housing contracts with listing agents to list HUD properties. The list of HUD properties is accessible from the HUD website. You may access this website in the resources section listed below this article.
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Review the listing of your preferred house to ascertain the eligibility requirements of the specific property. Eligibility may vary by property and the listing should provide you with eligibility requirements related to the property you are interested in purchasing. For instance, certain HUD homes can be purchased with an FHA insured mortgage. FHA insured loans can be secured with as little as a 3.5 percent down-payment. If you are only capable of a 3.5 percent down-payment then you can limit your search to just the FHA qualifying properties.
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Contact the listing agent. The name of the listing agent should be listed with each individual property. The agent should provide you with the information about the property of your choice which may not be available on the actual listing. As an example, in order to be eligible for purchasing a HUD home you must be move into the house. However, certain properties are eligible for purchase by investors who do not intend to live in the house. These are houses which have been on the market for a period of time without attracting a purchaser who intends to use the house as a primary residence.
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