There are many misconceptions about distressed properties, including HUD homes. Many people are unsure how to go about buying this type of property. It’s actually a lot simpler than most buyers think, and HUD homes can often be a great deal. First, what is a HUD home? have been acquired by the government due to foreclosure on a FHA-insured mortgage. In order to try and get their money back on a foreclosure, HUD homes are available to the public to buy. If you’re considering purchasing a HUD property, check out the helpful tips below before you start the search.
- Start by finding a pro
HUD homes aren’t all that different than traditional home purchases, but they’re not exactly the same. Finding a real estate professional who’s experienced with these types of transactions is key – they’ll know the right questions to ask and the types of offers to submit on HUD homes in your area.
- Keep your budget realistic
When it comes to financing, be realistic about your price range. The importance of buying a home with feasible mortgage payments and interest rates is your ultimate goal here. While there’s nothing wrong with window-shopping, make sure you secure financing sooner than later. In a worst-case scenario, buyers find the house of their dreams, only to lose it to another buyer because their loan hasn’t yet been approved.
- Be prepared to move. Fast.
Keep in mind that HUD homes are highly-sought after by investors looking to fix and flip or rent out a property. Though if you’re looking for a HUD home as a primary residence, you can rest a little easier knowing that legally, HUD cannot accept bids on homes from real estate investors within the first 30 days that a home has hit the market. After that first month though, your competition will become greater, so if you find something you like, be prepared to submit an offer.
When it comes down to it, HUD homes can be a fantastic investment. With due diligence and proactive research, you might just find the HUD home of your dreams. Ready to start your search? Give Metrowest a shout – we specialize in this these types of sales and would love to help you start the process.