If you’re a house hunter in Denver, you’re well aware of the challenges buyers face in this market. Low inventory, coupled with high home prices can make it difficult to find affordable options. To combat this issue, buyers are finding creative ways to expand their search options, including adding HUD homes to the list. But what exactly is a HUD property and why should they be on your radar? Read on to find out.
What is a HUD home?
HUD homes are a byproduct of the FHA (Federal Housing Administration) program. You’ve likely heard of FHA mortgages, but what you might not realize that the FHA isn’t actually the lender on these types of properties. The FHA only insures the home. HUD (Department of Housing and Urban Development) homes are typically 1-to-4 unit residential properties obtained by HUD as a result of a foreclosure action on an FHA-insured mortgage. The HUD becomes the property owner and puts it up for sale to recover the losses on the foreclosure claim. These homes typically need some sort of work or repair done to them, but it can range from minor cosmetic fixes to more extensive problems.
Can anyone buy a HUD home?
Fortunately, nearly anyone is eligible for this type of housing. Anyone who has the cash or can qualify for a loan or a mortgage can buy a HUD home. The good news for homebuyers is that HUD homes are initially offered to owner-occupant purchasers. In other words, for the first 30 days, you’re not competing with investors. Following the priority period for owner occupants, unsold properties are available to all buyers, including investors. HUD homes can be an incredible opportunity for both home buyers and investors to get an excellent deal on a property.
Buying HUD homes is no more challenging than other types of properties, and it’s possible to find some great deals. The first step is getting a pro on your side who’s experienced with these types of transactions. Metrowest specializes in these types of sales – contact us today and we can help you start the process!