What is a HUD home?

HUD homes are foreclosed properties being sold by the Dept. of Housing and Urban Development, a branch of the U.S. government.  They are homes that were purchased using FHA loans, and when the homeowner lost the house to foreclosure it became a HUD home.

HUD gives first priority to owner-occupant buyers.  That means that if an investor offers full price and a first time buyer who plans to live in the house offers the same price, the owner-occupant will get the house.  The asking price that HUD sets is what the house appraised for on a recent FHA appraisal, so buyers don't need to worry that an appraisal will come in low and screw up their transaction.

But buying a HUD home has its quirks too.  For instance, all homes are sold AS IS.  HUD will make no repairs, nor will they give you a repair credit.  There is no inspection contingency and no appraisal contingency.  If you cancel escrow for any reason you will lose your deposit.

Only HUD brokers can show and help you purchase a HUD home.  Call me today if you'd like to see whether a HUD home might be right for you!


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