What is a HUD Home?
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.
The following information is provided to as an introduction to
the process through which HUD homes can be purchased. You can either scroll down
the page, or access specific topics through the following topic menu. Additional
links provided in the menu to the right provide access to FHA program and policy
information for homeowners, homebuyers, and members of the mortgage lending and
real estate industries.
Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan
(subject to certain restrictions) you may buy a HUD Home. HUD Homes are
initially offered to owner-occupant purchasers (people who are buying the home
as their primary residence). Following the priority period for owner occupants,
unsold properties are available to all buyers, including investors.
What about financing?
HUD does not provide direct financing to buyers of HUD Homes.
Buyers must obtain financing through either their own cash reserves or a
mortgage lender. If you have the necessary available cash
or can qualify for a loan (subject to certain restrictions) you may buy a HUD
Home. While HUD does not provide direct financing for the purchase of a HUD
Home, it may be possible for you to qualify for an FHA Mortgage to
finance the purchase.
