HUD Announces Launch of HUD Home Store:
HUD Home Store is the listing site for HUD real estate owned (REO)
single-family properties. This new site provides the public, brokers,
potential owner-occupants, state and local governments and nonprofit
organizations a centralized location to search the inventory of HUD
properties for sale. In addition, registered real estate brokers and other
organizations can place bids on behalf of their clients to purchase a HUD
HUD Home Store also includes many informative user-friendly features
providing advice and guidance for consumers on the home buying process. FAQs
are available online for:
What is a HUD Home?
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result
of a foreclosure action on an FHA-insured mortgage. HUD becomes the property
owner and offers it for sale to recover the loss on the foreclosure claim.
The following information is provided to as an
introduction to the process through which HUD homes can be purchased. You
can either scroll down the page, or access specific topics through the
following topic menu. Additional links provided in the menu to the right
provide access to FHA program and policy information for homeowners, home-buyers, and members of the mortgage lending and real estate industries.
Who Can Buy a
Almost anyone! If you have the cash or can qualify for a
loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are
initially offered to owner-occupant purchasers (people who are buying the
home as their primary residence). Following the priority period for owner
occupants, unsold properties are available to all buyers, including
If you are an
evacuee displaced by Hurricane Katrina, Rita or Wilma, you may be
eligible to purchase a HUD Home at a discounted price.
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.
If you are interested in acquiring a HUD Home that is in
need of repair, you may be interested in applying for an
FHA 203(k) Rehabilitation Loan. When a homebuyer wants to purchase a
house in need of repair or modernization, the homebuyer usually has to
obtain financing first to purchase the dwelling; additional financing to do
the rehabilitation construction; and a permanent mortgage when the work is
completed to pay off the interim loans with a permanent mortgage. Often the
interim financing (the acquisition and construction loans) involves
relatively high interest rates and short amortization periods. The Section
203(k) program was designed to address this situation. The borrower can get
just one mortgage loan, at a long-term fixed (or adjustable) rate, to
finance both the acquisition and the rehabilitation of the property.
Click here for more information about FHA's 203(k) Rehabilitation Loan
HUD does not provide direct financing to buyers of HUD
Homes. Buyers must obtain financing through either their own cash reserves
or a mortgage lender. If you have the necessary available cash or can
qualify for a loan (subject to certain restrictions) you may buy a HUD Home.
While HUD does not provide direct financing for the purchase of a HUD Home,
it may be possible for you to qualify for an
FHA-insured mortgage to finance the purchase.
FHA REO properties located in designated
Revitalization Areas are available at a reduced sales price to law
enforcement officers, teachers, firefighters, emergency medical technicians,
nonprofits and local governments. Read more about these
Good Neighbor Initiatives. You can also view maps of REO properties and
special programs such as Revitalization Areas with HUD's
Any single family property acquired by HUD FHA will
display a sign identifying who is managing the property before it is listed
for sale. During this time the property is appraised, title issues are
resolved, if necessary, and a determination is made about the property's
eligibility for HUD's
discount sales programs. Property listings are posted on
Home Store. For more information, contact the
Management and Marketing Contractor serving your area.
If you have more questions about the sale and purchase of
FHA-insured homes, contact the
Management and Marketing Contractor that manages the FHA housing
portfolio in your community. You may also log onto the
Center for more information about FHA and its various programs.