HUD Homes in the West Valley

Why HUD Homes?


What is a HUD Home?

If a home was purchased using FHA financing and the mortgage goes into default. The loan service (or lender) may opt to collect on the FHA Insurance policy in which case the home will be conveyed to the U.S. Department of Housing and Urban Development (HUD) after the foreclosure process.

Who can buy a HUD Home?

Owner occupant individuals, investors, HUD-approved non-profit organizations or government entities can all buy HUD Homes. Buyers of course have to secure a loan or pay cash to buy the home, a pre-qualification letter or proof of funds is required. Priority is given to owner occupants when selling HUD Homes.

What are some of the benefits of buying a HUD Home?

  • HUD will pay up to 3% of buyers closings cost as negotiated when submitting a bid on a HUD Home.
  • HUD will pay the escrow fee in addition to any negotiated closing cost assistance
  • Priority is given to owner occupants meaning many home buyers do not have to compete with investors.
  • HUD homes are typically listed at FHA AS-IS Appraisal, giving you piece of mind that the home is a great value.
  • Bids are placed silently and electronically.
  • Bids are selected based on which bid will net HUD the most money (provided the bid is acceptable and the purchaser qualifies).
  • Are you a teacher, firefighter, law enforement officer, or emergency medical technician (EMT)? You could be eligible to purchase a HUD Home for half the price! Learn more about the Good Neighbor Next Door Program here.

Benefits exclusive to buyers using FHA Financing when purchasing a HUD Home:

  • Save money by using the FHA Appraisal which was done just prior to listing the home (appraisals are valid for 120 days).
  • HUD Pays for the termite inspection and will treat any active infestations.
  • Up to $5000 worth of Minimum Property Requirement repairs can be financed into the FHA loan allowing for repairs to be made after close of escrow.
  • Most HUD Homes are eligible for an FHA 203k loan, allowing home buyers to purchase and finance for major repairs that exceed $5000.
  • In a situation where an FHA buyer is purchasing a home and a lead based paint inspection reveals that the home will need remediation. HUD willl pay up to $4000 towards the remediation costs.

 

 





 

 

**I'm excited about the benefits and values found in HUD Homes! How do I find one?**

Search for HUD Homes live at www.HUDHomeStore.com, or use the new App for your mobile device:

HHSiPhone          HHSAndroid 

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Input your information below and one of our HUD Home Specialists can guide you through the process. 

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Frank Keel
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