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When the foreclosure is owned by a U.S. government agency, the deal can be especially sweet.
What Is a HUD Home and Who Qualifies?
A HUD home is a one-to-four-unit residential foreclosure owned by the U.S. Department of Housing and Urban Development.
This is the agency that oversees the Federal Housing Administration and mortgage loans insured by the FHA.
The home is open for bidding once it has been listed for sale.
However, eligible owner-occupants get exclusive access during the first 30 days a HUD home is listed.
Here are the steps youll follow to buy a HUD home.
Programs vary by location, but HUD maintains a list oflocal homebuying programson its website.
However, the homes are foreclosures, which presents some drawbacks you should consider before you buy.
Pros
Cons
Heres an at-a-glance look at the pros and cons of buying a HUD home.
Dollar Homes
This program sells single-family homes to local governments for $1.
The homes are HUD homes that failed to sell during their first listing.
The communities that purchase them use them to address the housing needs of low- and moderate-income families.
Discounts for Nonprofits
The FHA sells HUD homes to approved non-profits at a discount.
Nonprofits rehab the homes and sell them to families with low and moderate incomes.
Avoiding these common mistakes ensures that your sale goes just as smoothly.
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