What is a HUD Home?

A HUD home is a residential property consisting of one to four units that HUD now owns following a foreclosure on a mortgage insured by the FHA. To recover losses on the foreclosure claim, HUD is offering the property for sale.

Who can purchase a HUD Home?
It’s easy for anyone to qualify for a purchase. Typically, if you have cash or meet the requirements for a loan, you will be able to buy a HUD home. 

Owner occupants (who will live in the home as primary residence) are first given a special priority period to buy HUD homes. Once this period has ended, HUD properties that remain unsold may be acquired by anyone, investors included.

HUD homes can be made available at discounted rates to people who have been displaced by Hurricanes Katrina, Rita or Wilma.

How the homes are sold ?

Properties that are available for sale to the public appear at online websites that are run by management companies that have contracts with HUD. If you are looking to buy a HUD home, you can contact a HUD-registered real estate broker who can send an offer and contract to purchase for the property on your behalf. If indicated in the contract, HUD will pay the commission to the broker.

Special Programs

Teachers, firefighters, police officers and law enforcement officials, emergency medical technicians, local governments and non-profit organizations may acquire designated properties at a lower sales price under so-called “Good Neighbor Initiatives.”

Is home inspection required?

A home inspection is not required, but it is highly recommended that you arrange for an inspection after having your offer accepted, as all HUD homes are sold as-is with no warranty, and HUD is not responsible for repairs to the property.

Does HUD offer financing directly?

No, HUD does not make available any direct financing. However, some HUD homes do meet the guidelines for FHA-insured loans. It is best to contact several lenders to find the best terms for your loan.