Frequently Asked Questions
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What is a HUD Home? A HUD home is a property that had a HUD Insured loan and the previous owner was unable to make their payments. The owner defaulted on their HUD Insured loan and the house entered into foreclosure.
What is the difference between a HUD Home and a Foreclosure? A home that is purchased with an FHA loan is insured by the department of Housing and Urban Development (HUD). If the owner is unable to make payments they are foreclosed on. However, the HUD insures the bank against loss and takes the responsibility for the home. A foreclosure is a bank-owned home, while a HUD home is not.
Who can buy a HUD Home? Anyone. HUD tries to help American citizens become home-owners. They especially want to help home buyers intending to live in the home. HUD offers an initial 15 day bidding period for buyers intending to live in the home. Homes that are still on the market after the 15 day bidding period are then offered to investors.
What type of financing do I need to buy a HUD home? HUD does not offer any special type of financing for these homes. Many HUD homes can qualify for FHA financing. You need is to be approved for a loan by your local lender. Fill out this form for a quick pre-qualification with a trusted lender.
Will HUD homes have any repairs or give warranties? HUD homes are always sold as is. Because of this, many people are unable to buy some HUD homes that need excessive repairs. FHA and Conventional loans may or may not lend on certain HUD homes. Be sure to have us help you know which homes you will need to buy with cash or which homes will qualify for you to buy with a loan. Inexperienced lenders and Real estate agents could cost you your earnest money by placing bids on these properties.
How do I buy a HUD home? Only Real Estate Brokers that are certified with HUD can assist you with buying a HUD home. We are registered with HUD and have been selling Utah HUDS since 1989. To view HUDs, find financing, or buy a HUD, e-mail me direct at HelpNow@goBEhome.com or call me at 801-966-4000.
Are HUD homes good deals? Many of our clients have found incredible deals when buying a HUD home. However, not all HUD homes are guaranteed to be a great deal. Together we must analyze each home individually to determine the homes market value and if it is a good deal for your situation.
How do I find or view available HUD homes? HUDs are listed on the MLS. When searching online they are included with the general homes for sale. However, we have the ability to highlight HUDs only and send them to your email.
How much money must I put down to buy a HUD home? The amount you must put down is determined by what type of loan you qualify for. However, almost all HUDs require you to deposit $1000 up front as earnest money when you put a bid on a HUD home.