| HUD homes for sale are FHA insured loans that have | | | | condition. All HUD home listings are sold in |
| been foreclosed and HUD has taken possession of | | | | “As-Is” condition and HUD will not do any repairs. |
| the HUD houses. | | | | They do provide a Property Condition Report on some |
| HUD assigns the HUD house to a Management and | | | | HUD home listings but no all. The Property Condition |
| Marketing Contractor. The M&M contractor has | | | | Report is similar to a home inspection. The problem |
| cleaned it up the HUD house and had it appraised by a | | | | with buying a HUD home listing is you cannot do a full |
| FHA appraiser. | | | | inspection before you make a bid. You have to have a |
| The rules for buying HUD homes for sale are different | | | | signed accepted contract from HUD before you can |
| for home buyers (HUD calls them Owner-Occupants) | | | | have the utilities turn on. You can have an inspection |
| and investors. This article is written for home buyers, | | | | done after you have an accepted contract. |
| not investors, and I will discus the things they should | | | | 4. Earnest money. The earnest money requirements |
| know before making a bid on a HUD house. | | | | are $1,000 if the list price of the HUD home listing is |
| 1. Who can buy a HUD home for sale? Almost any | | | | over $50,000 and $500 if the list price is under $50,000. |
| one can buy HUD homes for sale along as you can | | | | It has to be in the form of a cashier check, official |
| get a mortgage or have cash. There are no | | | | bank check, or money order. The return of the earnest |
| restrictions on who can buy HUD houses. | | | | money is not automatic if you decide you don’t |
| 2. Loan pre-approval. You will need a pre-qualification | | | | want the HUD home listing. |
| letter from a lender or proof of cash funds in the | | | | 5. Real estate agent. To make bids on HUD homes for |
| amount greater than the property that you are buying. | | | | sale you have to use a real estate agent. The bidding |
| HUD will not do a HUD home loan to purchase a HUD | | | | process is done on the internet by an approved real |
| home for sale. It is your responsibility to make your | | | | estate agent. You need to locate an experienced real |
| own financing arrangements. | | | | estate agent in buying HUD houses. An inexperienced |
| 3. HUD houses for sale are sold in “AS-IS” | | | | agent will cost you thousands of dollars in mistakes. |