Buying Housing from HUD

by Greg Cryns

            When you’re searching for the perfect place to live, you may want to consider housing options from HUD, or the Department of Housing and Urban Development.  Homes listed with HUD have been insured by the Federal Housing Administration but have been repossessed in a foreclosure.

            HUD homes are often offered at a much less expensive price than the market value for the home.  And anyone who can qualify for a mortgage loan or has the cash to purchase a home is eligible to buy from HUD. In addition, you may be eligible for 

special programs offered by HUD.  For example, evacuees from Hurricane Katrina are eligible for an even deeper discount on a HUD home than the general public.

            HUD also offers the good neighbor program that offers the purchase of homes at 50% of the property value.  If you’re a teacher, firefighter, police officer, or emergency medical technician you may be eligible for this program.

            There are some specific regulations for the good neighbor program and it operates through a lottery system.  While it can take quite awhile to become selected to buy a home, it’s well worth the wait when you consider the built-in equity.  Once you purchase a home you’re required to live in it for a specific amount of time before it can be sold.

            When you’re buying through HUD, you’re more likely to be eligible for financing because banks know that you’re getting a good deal.  The lender is more likely to recover all of their money if you have to walk away for some reason.

            One important thing to note is that HUD homes are sold as-is.  That means that you’ll be responsible for making any repairs out of your pocket.  However, these costs are usually already reflected in the purchase price and you can often add them in to your mortgage.

            All in all, HUD homes are a great option of you’re looking for a home that’s priced below market value.  It’s even better if you’re eligible for one of their special programs that offers substantial discounts to home buyers.

            HUD is a great option for anyone who’s looking for a great deal in the housing market.  And because of the mortgage crisis in the United States, there are many HUD homes to choose from in neighborhoods all over the country.

            However, HUD homes often have repairs that need to be made so you’ll need to be prepared for the reality of having a home that needs work.  But if you’re willing to deal with a few repairs, this may be the perfect program for you.