Helpful Information On How To Buy A HUD Home

Dated: 02/21/2019

Views: 47

How to buy a HUD Home

If you are looking for a home to buy for yourself and/or your family or are an investor looking to buy real estate at the best prices, HUD Homes can provide you just what you are looking for at, often times, an unbeatable price.

Below are some important tips about buying a HUD Home followed by the next steps you should take for more information about buying a HUD home.

1. How do I purchase a HUD home?

All HUD homes available for sale are listed for sale on their website

All bids for HUD homes must be placed by a licensed, HUD registered real estate agent. An agent experienced in HUD home sales will be your best asset in locating and successfully negotiating your HUD home.

2. How can I obtain financing for HUD home purchases?

A local mortgage broker or lender (such as Mike Smalley with Waterstone Mortgage) can help you finance a HUD home purchase, same as a normal home purchase! You can use FHA, VA or conventional financing to purchase a HUD home. You may also purchase a property with cash.

In addition, from time to time (and pretty much always in Florida), HUD offers a $100.00 down payment program for all eligible HUD Homes properties. Purchasers must be owner occupants, utilize FHA or VA insured financing and offer full list price.

Please contact your local HUD approved Real Estate Agent for further information and to see if the $100.00 down program is currently in affect now (it is in Florida).

3. Are there special programs for teachers, police officers, fire fighters and EMS personnel to purchase HUD properties?

Yes! The Good Neighbor Next Door (GNND) program allows people in these professions to purchase qualifying HUD homes at a 50% discount with certain occupancy requirements! Feel free to contact us at to Verify Qualification for this Program or get more information.

4. How can an investor purchase a HUD home?

Owner Occupants have first priority to purchase HUD homes during the exclusive listing period. Once this period is over, investors and others may bid on HUD homes for purchase.

5. What if my bid for a HUD home is accepted and I decide I do not want to buy it?

You can cancel your bid under certain circumstances, but consult your licensed HUD registered real estate agent or broker to ensure this is done properly to avoid losing your deposit or earnest money.

6. When can I complete a home inspection on the property?

You should do a walk-through inspection before you make a bid on a HUD home and again immediately BEFORE the closing. You should make written documentation of the property condition and take pictures during your first walk-through in case the property is damaged between then and your follow-up walk-through before the close of escrow. If you find out that the condition of the property has changed between your walk-through inspections, immediately notify the HUD property manager of the problems or change. Your agent can help you get a price adjustment or credit as needed in these cases where HUD allows. Your agent can assist you with this and answer any questions.

7. What if I want to make repairs or changes to the property before I move in?

HUD homes are sold as-is and there are no warranties. You are not allowed to make repairs BEFORE you have purchased the home.

8. Are there any special financing programs available for repairing HUD homes?

Yes! The FHA 203K is a streamlined loan that allows qualified buyers to make repairs to homes purchased from HUD! Contact us for information on this great program! In addition, from time to time, HUD offers a $100 down payment program for all eligible HUD real estate owned properties. Purchasers must be owner occupants, utilize FHA or VA insured financing and offer full list price. Get more information from an approved Agent to see if the $100.00 down program is currently in affect now (it is in Florida).

9. What are the down payment requirements for HUD home purchase?

This depends on the type of loan or financing you will be using to purchase the property. Your mortgage lender will be able to help you with this. If it is a FHA loan, then a down payment of 3.5% of the sales price is required. In most cases, a VA financed property has no down payment requirement. HUD homes can provide you as much value as any foreclosure or short sale home in the market without a lot of the hassles associated with those types of sales.

To find out if a HUD home purchase will provide you with the home you want at an unbeatable price, feel free to contact me to review your situation and see about getting you into the home of your dreams at a price most only dream about.

UPDATED “Introducing E-Signatures on HUD Contracts”

Jesse Smith, Broker
Smith Realty, Inc

Blog author image

Jesse Smith

A lifelong native of the Central Florida area, Jesse Smith is knowledgeable about the many facets of Central Florida real estate, and can help you navigate your way through the buying/selling process ....

Want to Advertise on this Site?

Latest Blog Posts

March Maintenance

Spring is upon us so here are few tips for some home maintenance this month. Hit the ground running with this up to date info in hand! Stop by and like my Facebook and Instagram page

Read More


OTHER COOL AREA INFO Hit the ground running with this up to date info in hand! Stop by and like my Facebook and Instagram page for ongoing info as well @smithrealtytampabayHappy

Read More

Deltona Pool Home 3 Bedrooms 2 Bathroom 155k

Are you ready for this? Come check out this 3/2/2 block home featuring a huge screened in pool entertainment area. This home also features a formal dining room, fireplace, and spacious fenced in.

Read More

Do You Know What CUR Is And How It Important It Can Be

A Way to Describe Credit Usage....CUR or this cute dogYour credit utilization ratio is essentially a measurement of how much of your credit you’re actually using. More accurately, how much of your

Read More