Denver’s slight increase in housing inventory last month is certainly a welcome change, as anyone house hunting here will tell you affordable options are still on the limited side. A great way to expand your search options is by considering non-traditional housing options like HUD homes. But what exactly is a HUD home and why should they be contenders on your list? Read on to find out.
A HUD home is one that is owned by the U.S. Department of Housing and Urban Development. Before a home becomes the property of HUD, it was likely owned by a regular homeowner who is no longer able to pay his or her monthly mortgage and ends up in foreclosure. When this happens, the home goes to HUD. The HUD then must figure out how to unload this home and make back its money.
Advantages of HUD homes:
The government doesn’t want to own these foreclosed homes any longer than it needs to, so HUD homes are priced to move, sometimes below market value. Plus, HUD offers special incentives to buyers in certain markets to sweeten the deal.
First, HUD home buyers enjoy low down-payment requirements or sales allowances they can use to pay closing costs or make repairs.
Additionally, HUD offers the “Good Neighbor Next Door” program to teachers, police officers, firefighters, and emergency medical service employees who plan to live in the property for at least 36 months. These buyers can receive up to 50% off list price in areas experiencing revitalization.
Lastly, HUD gives preference to owner-occupants who intend to live in the home for at least one year, so odds are good you’ll beat out investors as well.
Are you ready to scope out HUD home offerings in the Denver area? Metrowest specializes in these types of sales and would be happy to help you start the process. Give us a shout today!