A HUD home is not just a great choice for investors; but can be a great opportunity for a buyer that intends to occupy the home as their primary residence.
In fact, a HUD home may be one of the best home ownership options available for an owner occupant.
What is a HUD HOME?
If you guessed it is a foreclosed home you are correct. The foreclosed property will be a 1-to 4 unit residential home. The home is being sold because the previous owner who financed the home with a FHA-insured mortgage has defaulted on the loan resulting in that foreclosure. The property is being sold to help recover the loss.
The purchase of a HUD home has numerous perks such as the potential to acquire a property for a very fair market value, help with buyer’s closing costs, and other area
incentives. However a HUD home is not the best choice for every buyer.
One of the disadvantages of a HUD foreclosure is that the home will be sold as is. A home inspection is highly encouraged, but HUD will not pay for the correction of defects or repairs of any property. Just like any foreclosure; these properties may not be in move in condition and may take some time and additional investment to get move in ready.
Deciding to purchase a HUD home requires careful consideration. For a list of frequently asked questions regarding HUD homes visit: http://portal.hud.gov/hudportal/documents/huddoc?id=publicfaq.pdf.
Not all real estate brokers can sell HUD Homes. The broker must be a HUD registered broker. If you are interested in learning more about purchasing a HUD home, current incentives offered, or getting a list of available homes for sale contact me at 615-625-5002. If you are in the market to buy a home, you can also join our Savvy home buyer’s tribe and get information directly to your inbox. Join the tribe by clicking visiting savvyhomebuyerstribe.com.
