When considering buying a HUD home, one of the first things you need to do is fully understand exactly what a HUD home actually is. A HUD home is typically a home that consists of anywhere from one to four units that has been foreclosed on through an FHA insured loan. If you can purchase the home in cash or qualify for a loan for the value of the home (within certain limits) then chances are that you actually qualify to buy the HUD home. During the initial offering period those buying a HUD home in order to occupy the home receive preference. If the home has not sold during that period of time, the home will be offered for sale to those who would use the property as an investment property as well.
One important thing to remember when buying a HUD home is that the process is quite different from the purchase of traditional home loans. In fact, this is quite a unique process as far as home purchases go. HUD homes are typically listed online. The listings are handled through an outside agency and not HUD itself. If you wish to place a bid on one of these properties it is important that you keep in mind that HUD offers no guarantees about the condition of these properties and will make no improvements. In other words, have a thorough inspection performed before placing a bid or buying a HUD home and make your bid accordingly.
The road to buying a HUD home is a rather tricky road indeed. It is required that you go through a realtor if your plans involve purchasing a home that is owned by HUD. This is not a bad thing however as a realtor can help you navigate the muddy waters of home ownership with far less
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