Who can buy a HUD Home?

A HUD home is one that was purchased with an FHA (Federal Housing Administration) loan that has since fallen into foreclosure, and it’s fast becoming a popular consideration for areas experiencing low inventory and increasing home sale prices. If you’re considering purchasing a HUD home to break into homeownership, you may have questions as to who can actually buy this type of property.

There are five types of buyers identified by HUD who are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home, and only registered bidders can make offers on properties. This makes it incredibly important to hire an agent experienced with these types of transactions!

Owner Occupant:  eligible owner occupants are individuals with a valid social security number who have not purchased a HUD property with the past two years. Owner occupants rank above non-profits and government agencies in the bid selection process for exclusive and extended listings.

Investor: eligible investors are individuals with a valid social security number or Employer Identification Number (EIN). They can only bid on homes in the extended phase and are ranked below other types of bidders in the bid selection process.

 Good Neighbor Next Door (GNND):  law enforcement officers, pre-Kindergarten through 12th-grade teachers, firefighters, and emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, you must commit to live in the property for 36 months as your sole residence.

Nonprofit: eligible nonprofit organizations can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. Nonprofits rank below government agencies in the bid selection process for the lottery, but above them for exclusive and extended listings.

Government Agency:  approved government agencies can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas.

Think a HUD home may be the right choice for your needs? Contact Metrowest today! 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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