I am often asked, "Where can I find HUD homes on the market?" Consumers are looking for good values in home purchases these days. But I find many misconceptions about HUD owned homes and the process of buying them.
As a Baton Rouge HUD broker, we are handling 2 HUD owned home purchases on beautiful townhomes this month:
If you are thinking about buying a HUD owned home, you need to understand some of the differences between buying a HUD owned home and other real estate transactions:
1. Many HUD homes are in move-in condition. For example, the townhome we are handling on Ballina even has fresh paint and is extremely clean. There is a misconception that HUD properties are extreme fixer-uppers. Both of these homes are being purchased by first time homebuyers and are "Insured" by HUD which means that nothing additional is needed for an FHA insured loan on the home. With insured HUD homes the buyer is provided with an FHA appraisal which further saves the buyer costs of purchase.
2. Even if the home isn't in perfect condition, there are HUD insured with escrow, which means that an FHA loan can be used to cover minor repairs needed to obatin FHA financing. There are some homes needing more extensive repairs that must go conventional, but no all HUD praoperties are like this.
3. All the bidding is done online by qualifoied HUD brokers. And HUD requires special forms and certified deposits prior to submitting an online bid. And timing is critical as accepted bid packages must be received out of state in 2 business days with the deposite.
4. All inspections and utility turn ons and offs are at buyers cost and liability
Looking for a HUD home? Find a HUD broker to help you.