Like other distressed properties, HUD homes can sometimes get a bad rap. But in reality, buying a HUD home can be a positive experience as well as a great deal! That is if you know what you’re in for. It’s important to understand facets of both the foreclosure process and the HUD Program.
If you’re not all that familiar with the process, you’re not alone. Check out the tips below learn more about buying a HUD home and what you should keep in mind along the way.
First, what is a HUD home? A program run by the U.S. Department of Housing and Urban Development, HUD homes have been acquired by the government due to foreclosure on an FHA-insured mortgage. To recoup the monetary loss on the foreclosure, HUD sells these homes to the public.
Can anyone buy a HUD home? Yes and no.
In the first 30 days after a HUD home becomes available only those with intent to live in it can bid. In other words, investors cannot bid on a HUD home in the first 30 days, which brings us to our first tip:
Be prepared to move quickly – this means getting prequalified for a mortgage so you can know your budget as well as finding a professional experienced in HUD home transactions who can help you navigate the process. Competition can be fierce, so it’s important to be prepared.
Be realistic about price.
When it comes to financing, be realistic about your price range. The importance of buying a home with feasible mortgage payments and interest rates has never been more important. It’s crucial to know just how much house you can really afford.
If you think a HUD home could be the right choice for you, contact Metrowest today. We specialize in these types of sales and would love to help you start the process!