We field alot of phone calls from people who are interested in buying a HUD home along the MS Gulf Coast. Many people have heard these homes might be a good investment but are not sure exactly what they are or how they work. Let’s take a closer look at the process of buying a HUD home and whether or not it may be right for you.
What is a HUD Home Anyway?
Homes with FHA loans which go into foreclosure are obtained by HUD, then resold, to recover funds lost from the foreclosure claim. Many people are under the impression that these homes are only available to certain buyers and are great investment opportunities because of discounted prices. To an extent, that information is true. However, there magical deals you may have heard about are most likely less common than you think. Let’s take a closer look at who can purchase a HUD home and how it’s done.
Who Can Purchase a HUD Home?
When a HUD home first hits the market, it is usually reserved for those that plan to live in the home. After a certain period, the home will then be made available to investors, who hope to either flip or rent the home.
What About Inspections?
It’s extremely important to get an inspection when purchasing a HUD home. These homes are sold as-is. In other words, if there is something wrong with the home, it will be up to the buyer to fix it. When it comes to buying HUD homes, it pays to know what is wrong with the home, so you don’t get in over your head. In other words, you might be okay with having to replace the water heater, but needing to replace the roof might be a deal-breaker. It’s also important to point out that homes in need of repair may qualify for the FHA 203(k) Rehabilitation Loan.
How Do You Finance a HUD Home?
HUD homes do not come with any special financing. You will need to obtain financing through a typical mortgage lender, or from your own assets. You may potentially qualify for a FHA loan in order to purchase the home.
Want to Find a Property?
The best way to find a HUD home along the MS Gulf Coast is to let me help you – we can provide a listing of homes that have been acquired through HUD and are now available for purchase.
A HUD home can be a wonderful way for home buyers to score a great deal. Best of all, these purchases are open to almost any buyer. But don’t overlook potential property condition issues which could add big bucks to the seemingly low sales price. Follow this advice and you’ll be in a better position to make a smart decision!
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