RENOVATED HUD HOME FOR SALE Explained

For home purchasers (HUD calls them Owner-Occupants) and investors, the rules for buying HUD homes for sale are distinct. This article is written for home purchasers, not developers, and before making an offer on a HUD property, I will cover the stuff they should know.  more info here

1. Who can buy a home from HUD for sale? As you can get a mortgage or have cash, almost everyone can purchase HUD homes for sale. There are no limits on who can buy houses from HUD.

2. Pre-approval on loan. The sum greater than the property you are purchasing would require a pre-qualification letter from a lender or evidence of cash funds. HUD is not going to have a HUD home loan to buy a HUD home for sale. Having your own financing plans is your duty.

3. In AS-IS” state, HUD houses for sale are sold. All HUD home listings are sold in As-Is” condition, and no repairs will be made by HUD. On certain HUD home listings, they do have a Property Condition Report, but not all. The Property Condition Report is equivalent to an inspection of a house. The issue with purchasing a HUD home listing is that before you make a bid, you can’t do a complete inspection. Before you can get the electricity switched on, you need to have a signed approved contract from HUD. After you have an approved contract, you will have an inspection completed.

4. Money Earnest. If the list price of the HUD home listing is over $50,000 and $500 if the list price is under $50,000, the earnest money criteria are $1,000. This must take the form of a cashier’s check, an official bank check, or a money order. If you decide you don’t want the HUD home listing, the return of the earnest cash is not automatic.

5. Agent for real estate. You have to use a real estate agent to put bids for HUD homes for sale. On the internet, the bidding process is done by an authorised real estate agent. When purchasing HUD homes, you need to find an experienced real estate agent. An inexperienced officer is going to cost you thousands of dollars in errors.

It’s a lot different to purchasing HUD homes for sale than buying a house from a seller-owner. You have to do the requisite research to learn about the possibilities and disadvantages of buying a HUD home for sale even before you make a bid on a HUD property.