Can anyone Qualify for a HUD Home?

Denver’s market has recently endured a bit a cool down, but home prices here are still high, with inventory numbers still on the low side. For this reason, many house hunters add HUD homes to their searches – not only can it increase your options, but you could also end up making a great investment.

Below we breakdown what a HUD home is and buyers who qualify for them.

What is a HUD Home?
HUD homes are residential properties that contain one to four units and are owned by the HUD (Department of Housing and Urban Development). Properties become part of the HUD program when the previous Federal Housing Administration (FHA)-backed mortgage goes into foreclosure. HUD recovers the property to sell at fair market value, recovering losses on the bad debt.

Considerations for buying this type of home
During the first 30 days, a HUD home is on the market it can only be bid on by buyers who intend to make the property their

primary residence. Once those 30 days are up, investors can bid on the property. If the home requires less than $5,000 in repairs, it can qualify as an FHA-insured HUD property. If it needs more than $5,000 in repairs, it is considered an FHA-uninsured HUD property. Bids, or offers, are made through a HUD-approved realtor.

Who qualifies for a HUD home?
One of the great things about buying a HUD home is that it isn’t all that different from a traditional sale – at least in terms of qualifying. The HUD is not a lender, so anyone with the cash or an approved loan can qualify for a HUD property. For FHA-insured properties, buyers can qualify for FHA financing with only 3.5 percent down with a minimum credit score of 580.

If you’re in the market for a HUD home in the Denver area, step one is to find an experienced pro who is skilled in these types of deals. Give Metrowest a shout – we specialize in these types of sales and would love to help you start the process!

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.

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