Only a HUD approved broker can show you a HUD home. Not all real estate agents work for a broker that is HUD approved, so it’s important for you to make sure that you are working with an agent that can show you HUD homes. HUD homes are available on the MLS, however, you can only enter one and submit an offer on one through a HUD broker. We can show you all the homes that you are interested in viewing, including HUD homes.
If you have the cash or have qualified for a loan, you can bid on a HUD home. HUD gives the initial preference to owner-occupying buyers (those who will be living in the home as their primary residence). After the property sits on the market for a certain amount of time, HUD will offer the home for sale to investors.
HUD Homes are sold in their “as-is” condition. HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase. Because of HUD’s as-is policy, HUD Homes can often be a great opportunity for those homebuyers in search of a “fixer-upper”. Not every HUD Home needs fixing up, but when one does, it can be a real bargain. For example, HUD’s asking price on the home reflects the appraised value in its current (“as-is”) condition, unless otherwise specified.
While HUD does not provide direct financing for the rehabilitation of REO properties, FHA does provide rehabilitation financing assistance through the 203(k) Rehabilitation Loan Program. Also, keep in mind that on most sales the buyer can request HUD to pay up to 3% of their financing and closing costs.