Are HUD Homes a good deal?
Home ownership improves communities, and HUD is dedicated to making that a reality for people and neighborhoods across the nation. HUD homes are previous foreclosures of residential property that are now owned by the US Department of Housing and Urban Development (HUD). Anyone with appropriate capital or financing can purchase a HUD home unless you work for or are a vendor of HUD.
Benefits of a HUD Home
HUD homes for sale are priced to move. The mission behind HUD is to make home-ownership more accessible; the cost of these homes are often below market value. Even greater discounts of up to fifty percent are offered to community workers, including teachers, police officers, EMS workers, and firefighters. This is referred to as HUD’s “Good Neighbor” program.
Other purchasing perks include flexible down payment and closing cost options. The best part, these benefits are created for owner-occupants. Precedence is offered to those intending on occupying the HUD home, so the average buyer doesn’t have to worry about competition from an investor or house-flipping realtor.
HUD Homes for Sale
HUD homes for sale are easily discovered on websites featuring a list of local HUD properties. Like conventional real estate listings, there are photos and an asking price. Where things differ are how HUD homes note a deadline on each listing. This cut-off is the last day for you to submit a bid as HUD homes are sold through an auction process. Once the deadline approaches, HUD reviews the submitted bids. If the offers are too low, HUD will re-open and extend the auction. Though all bids are considered, the highest acceptable offer is usually the one who wins the auction.
Purchasing a HUD Home
The idea of home-ownership seems more like a lofty dream for many Americans. HUD does it’s best to make these dreams a reality. Unlike traditional real estate, HUD properties aren’t looking to turn the biggest profit. Owned by the government, HUD does everything it can to reduces fees for reliable buyers. HUD has helped cover the cost of:
- Owner Title Insurance
- Lender Title Insurance
- Origination Fee
- Appraisal Fee
- Home Inspection
- Flood Certification
- and others
HUD even offers several buyers programs to aid in financing processing. Mentioned earlier for government workers was the “Good Neighbor” program. There’s also the “One Dollar” program making homes that have been listed for over 180 days with no bids, available to the local government to purchase and turn into low-income housing or public housing. The “Non-Profit” program makes the same option available to non-profit organizations instead of the local government. Both notions improve HUDs mission to increase housing availability.
Is a HUD Home Right for You?
HUD homes are more accessible with financing opportunities that many don’t have access to. If you’re not concerned with purchasing a home “as-is” and need this rare housing opportunity, a HUD home may be a good fit. Want to know if there is a HUD home in your area? Search the HUD home listings for housing deals of a lifetime.