This is the first of many blogs posts I will share with you on HUD homes for sale (aka HUD REOs) and FHA loans.  Stay tuned for more info.....

What is a HUD Home for Sale or HUD REO? 

• It is a residential property that had its mortgage insured by the FHA (Federal Housing Administration). 
• The property went into foreclosure and now the FHA owns the home 
• Don't let the word REO confuse you.  REO means Real Estate Owned - in other words a foreclosure.  From HUD's point of view a foreclosure is real estate they own and dont want to own.

What are the characteristics of a HUD REO?

• despite popular opinion - they are not all low end homes (far from it)
• they are 1 to 4 unit single family residences
• some are in move in condition, some require varying degrees of repair (often just carpet and paint)
• they are sold as is - HUD doesn't do repairs unless there is a safety, security, or marketability problem (don't worry if you want to do repairs there are FHA loans to help you finance them - more on that in future posts)
• you are encouraged to get your own independent inspection
• you will not acquire bills or liens on the property
• anyone can buy a HUD home
• investors cannot bid on the home until it has been for sale for 31 days
• investors can buy as many HUD REOs as they want
• owner occupants have the first 31 days the property is for sale to buy a HUD home without competing with investors
• owner occupants must live there for 1 year
• owner occupants cannot be involved in another HUD sale for 2 years after purchase
• owner occupants can buy a HUD Home for only $100 down using FHA financing
• Up to 3% closing costs and up to 5% selling agent commission is paid by HUD
• all offers are entered online for HUD's consideration but we must complete a HUD purchase package prior to making the online bid.  Only an agent registered with HUD can make the online bid.  I am a registered agent.
• the package must include a pre qualification letter from a loan officer (don't worry about that either - I know several loan officers that do excellent work)
• HUD homes can be purchased using FHA financing, conventional financing, or cash.

In my view, HUD Homes for sale (HUD REOs) when combined with FHA financing offer some of the best oppurtunities available in today's market.

My next blog will tell you more about buying a HUD home for only $100 down - stay tuned!

Contact Mike Taylor with any questions you may have!  Mike@CobbGARealty.com or 678-772-7411.

 Your search is over!