FInd Out Why Buying HUD Homes Can Save You Thousands
What are "HUD homes," and are they a good deal?
HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then it is sold at market value as quickly as possible.
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
Benefits to Buying a HUD Home
- A real estate broker will prepare and submit your offer and deposit for you without charging you.
- HUD pays up to 5 percent of the closing costs, saving you thousands.
- You can move in faster if you purchase a HUD home eligible for FHA-insured mortgage because it has already been appraised.
- HUD homes may be eligible for repair loans built into the mortgage and buyers may qualify for 3 percent down payments.
- The government guarantees the title is clean. You also can actually visit the property and see what you are buying, unlike an auction.
Note: In order to submit an offer on a HUD home, you have to work with a Government Approved HUD Broker. There is a no cost to working with one and it’s important to have someone who is very knowledgable on HUD procedures and guidelines.
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