3 Financing Options for HUD Homes

In any real estate market – including seller’s markets like Denver – everyone is looking for the best deal possible.  HUD homes, while different than traditional homes, can be a great value – especially in areas like ours. What is a HUD Home? In the simplest terms, a HUD home is a property owned by the U.S. Department of Housing and Urban Development (HUD). Before a home becomes the property of HUD, it was likely owned by a regular homeowner who was no longer able to pay the monthly mortgage, so the home ends up in foreclosure. When this happens, the home goes to HUD, which then must figure out how to unload this home and make its money back.

Many people think distressed housing has to be paid for in cash, but when it comes to the HUD, there are actually several financing options that buyers can take advantage of.

  • HUD “Good Neighbor” program offers HUD homes in revitalizing areas at a 50% discount to community workers (e.g., teachers, police officers, firefighters, and EMS personnel) who plan to live in the property for at least 36 months.
  • If the HUD home you’ve got your eye in is indeed a fixer-upper, you may qualify for a special kind of loan that can help you give your new home the attention it needs. This loan is known as an (FHA) 203(k) rehabilitation loan and it’s an ideal option for any buyer interested in a HUD fixer-upper because it allows you to purchase the home with a reserve that’s put in escrow to fund renovations.
  • Buyers can also utilize a traditional FHA loan. While the FHA doesn’t directly finance buyers, depending on your financial situation, your lender can qualify you for an FHA loan.

Ready to check out HUD home offerings in the Denver area? The first thing you want to do is get an experienced pro on your side. Metrowest specializes in these types of sales and would be happy to help you start the process. Give us a shout today!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply