If you're searching for a new home, you may have come across references to Housing and Urban Development (HUD) homes. HUD offers government mortgage insurance programs and loans. But what is a HUD home, exactly?
Here are the basics to help you with your home search:
HUD Homes: The Basics
HUD homes are foreclosed properties reclaimed by the government. When a buyer uses a Federal Housing Administration (FHA) loan to buy a residential property, they risk losing the property entirely if they cannot make their mortgage payments. The government then re-sells the homes at a low price to make up for the money spent paying off the rest of the mortgage.
Every HUD house gets an appraisal to determine the best price, but they are still often below market value. This makes them attractive options for first-time homebuyers, flippers or anybody looking for a good deal.
Incentives to Buy HUD Homes
The HUD agency offers many incentives to homebuyers to encourage the sale of these foreclosed properties. These incentives include grants, vouchers and special buyer programs to assist with mortgage payments, down payments and more. Buyers with careers in public service or who work with nonprofit organizations are also eligible for some of these special incentives.
Buying a HUD Home
It's important to note that the process for buying a HUD home differs from other homes. You won't find listings for these properties in the usual places like MLS or search portal sites. Instead, you can search and browse HUD listings on their website.
HUD homes are different from other properties in that you have to buy them at auction. You need a licensed real estate agent to represent you, to bid on and purchase a property.
Is a HUD property right for you? There are many factors to consider, but knowing the basics will help you make your decision. Consult a real estate professional for advice on the best way to proceed with your home search.
About the Author
Kimberly Hering
Kimberly Hering's devotion to helping people achieve their real estate goals stems from her genuine enjoyment of the process. Whatever the task, Kimberly makes it her mission to get it done, however she can, without compromising her client's needs. Often, that means thinking outside the box. After working with Kimberly, clients describe her as being Trustworthy, Creative, Patient, Highly Skilled, Attentive to the Process and having a lot of Integrity.
After spending more than 15 successful years working on Wall Street, Kimberly transitioned into Real Estate, joining Alain Pinel Realtors, then moving to Zephyr, now Corcoran Global Living, in 2018. During her career on Wall Street, Kimberly was a Vice President working as an Institutional Equity Salesperson for Montgomery Securities for 10 years. She covered the top money managers throughout the US and Canada. She joined Jefferies & Co as a Senior Vice President managing the Western Region Institutional Sales group, while continuing to cover the top money managers.
Kimberly leverages her extensive experience selling equities to top money managers throughout the US and Canada, to successfully negotiating any Real Estate transaction seamlessly for her clients. Kimberly is well versed in Marin's neighborhoods, towns, cities, and education system.
Living in the Bay Area for 35 years, 25 years in Marin and having 2 sons in local Marin schools, Kimberly spends a lot of time volunteering in the community and serving on various local Boards. Kimberly has a collection of resources ranging from the best local breakfast spots to vetted contractors. With her reliable list of valuable resources, Real Estate experience and unsurpassed knowledge of Marin's many communities, Kimberly can guide her clients through every aspect of a Real Estate transaction seamlessly.
Relocating to Marin, downsizing, upsizing, first time home buying, final home purchase or sale, or a lot to build a dream home, no matter the undertaking, Kimberly works seamlessly until the job at hand is completed with 100% satisfaction.