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What You Need to Know About Buying a HUD Homes

HUD Homes have been around for a long time, but never with as much inventory as they have right now.  Buying a HUD home is a great window of opportunity here because it's a niche market that many people know about--but few participate in. 

I sold many HUD homes in the mid 80's which was almost a mirror image of what's happening today.  Oil prices went thru the roof.  Banks went belly up.  The housing bubble-and then the crash.  Auctions and HUD Homes sales took over where traditional sales left off.  I guess I could say that I was known as a HUD Home Specialist in my area. 

What FHA has done now was to extend the $100-down repo program that allows borrowers to purchase HUD-owned properties.  In fact, some of the properties offer financing of up to 110% of the loan amount, which could include repairs up to $5,000.  In some markets, there are additional "incentives" to borrowers, with up to $2500 in paid closing costs. 

In order to purchase a HUD owned property, you must use a HUD approved real estate broker. We offer a FREE list of HUD and bank foreclosed properties emailed to you as soon as they hit the market.

What You Need to Know When Buying a HUD Home

Buying a home thru HUD and closing the deal is completely different than anything you have ever done before.  Here are some of the things you need to know ahead of time.

* Real estate agents MUST be a HUD approved (which could take a month)
* Agent & buyers work with the management company (not HUD)
* New HUD listings begin with a "bid process" submitted to the management company
* Each property has it's own "incentives" and it's important to know the "codes"
* Homes that will be owner-occupied are given first preference
* Can bid MORE than offered price but buyer must pay the difference
* HUD has an appraisal - but it's not automatically provided and has to be requested by the buyer
* There is a property condition statement for each home
* It's recommended that the buyer get a home inspection (their expense)
* Can be purchase non-owner occupied and HUD could offer 85% LTV loan
* Penalty of $10 per day if closing does not occur according to the date on the contract.
* HUD provides the title work

Whether you are a investor or a home to live in buyer, it is a great time to buy with the interest rates around  4-5%, and the home prices at such great bargains.

If you have a interest in purchasing a HUD or bank foreclosed home you can sign up for FREE at HUD deals. If you have any additional questions please give us a call at 281-344-0007or email me  at sam@FTXR.net

Sam Orlando

Broker/Owner

First Texas Realty

FOR A FREE LIST OF HUD AND BANK FORECLOSED HOMES GO TO

www.FTXR.com