What is a HUD home?

The Federal Housing Administration (FHA) is a part of the Department of Housing and Urban Development (HUD). It provides federal mortgage insurance. If a foreclosed home was purchased with a loan insured by the FHA, the lender can file a claim for the balance due on the mortgage. FHA pays the claim and then transfers the ownership to HUD who in turn sells the home for market value.

Home homes are sold "as-is". Purchasers are encouraged to have the home inspected by a private contractor to identify any defects. The purchaser will be responsible for all repairs and improvements. Any required or desired improvement to the property must be initiated after the closing of sale.

Prospective purchasers must be accompanied by a broker or agent when viewing HUD homes. Real Estate Broker or agent must also accompany individuals that are working on behalf of the purchaser such as appraisers or home inspectors.

HUD homes are listed on the MLS and on the HUD website. Agents submit bids electronically on behalf of the purchaser. The bid with the highest net to HUD is notified as accepted and the purchaser has 48 hours to send in the signed sales package. Purchaser will have to supply a pre-qualification letter from a lender or proof of sufficient funds to close.

Financing categories and Special Purchaser Initiatives are located on separate tabs on this website.

On the informational links page you can find the criteria for special programs such as the "Neighbor Next Door" which is designed to encourage law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase homes in revitalization communities. With this program HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties. Contact us for more details.