What is a HUD Home and who qualifies?
The government-backed home loans are guaranteed by various government departments. If a borrower goes through a foreclosure on a government mortgage the government pays off the loan balances and HUD takes possession of the home. The government doesn’t want to hold on to these homes too long, so they often sell them below fair market value. Public housing is limited to low-income families and individuals.
Benefits of Buying a HUD Home Besides getting a good deal on the price of HUD properties,
- they come with several other great benefits.
- HUD paid closing costs up to 5% of the purchase amount
- An FHA already appraises HUD homes approved appraiser
- you may be able to close faster if using an FHA loan
- You may be able to get up to 3% of your down payment paid for HUD
- loan programs available Low earnest money deposits ($500-$1000)
- Preference is given to buyer purchasing as a primary residence