Who isn’t looking for a great deal on a house? HUD homes, while different than traditional homes, can be a great value – especially in particularly hot markets like Denver. In simple terms, a HUD home is a place owned by the U.S. Department of Housing and Urban Development. Before a home becomes the property of HUD, it typically was 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, which then must figure out how to sell the home and make back its money. That’s where you come in!
Benefits 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, often below market value. Plus, HUD offers special incentives to buyers in certain markets to sweeten the deal.
- HUD “Good Neighbor” program offers HUD homes in revitalizing areas at a 50% discount to community workers (e.g., teachers, police officers, firefighters, and EMS personnel) who plan to live in the property for at least 36 months.
- Low down-payment requirements or sales allowances you can use to pay closing costs or make repairs.
- Another bonus for home buyers is that 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!
The greatest potential risk of a buying a HUD home is its condition. HUD homes are sold as is, so what you see is what you get. That’s why it’s so important to get a home inspection before you put your bid in.
Ready to check 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!