I have been asked this question many times, mostly back in the days of selling real estate. A HUD Home is a home that has been foreclosed on that was insured by the Department of Housing and Urban Development (a.k.a. HUD). These are typically FHA loans that have defaulted
You can do a search on the HUD website to see if there are any HUD homes in your area. HUD wants to get rid of these properties and they even offer several programs to help people qualify for HUD homes including:
- Low to moderate income families.
- Non profit organizations.
- Those who work in the community service such as teachers, firefighters, emergency workers and law enforcement officers.
The HUD website has all of the details about these special programs and also how one can qualify.
All of the details you would need to understand the process of buying a HUD home is available on the HUD website and can be found here.
The bottom line is that HUD homes can represent great deals for families seeking to find their first home so you owe it to yourself to check it out. If you decide this is the route for you, I encourage you to work with a trusted real estate professional that has experience in selling HUD homes because this will not be a standard real estate transaction and you could end up losing lots of money if you don’t know all of the right steps to take.