HUDhomestore and Deeply Discounted HUD Homes in 2020
HUD homes offered at HUDhomestore website are the solution to an ever unaffordable housing market. In most major metropolitan markets, home prices are soaring. In less than ten years, the average cost for a home in the United States has gone from a low of $160,000 to $244,000, a jump of 52.5%. This steep price increase has gotten buyers looking for good deals!
You may have seen real estate gurus discussing foreclosures in the past. When someone cannot make their mortgage’s monthly payments, the bank forecloses on them as a means to recoup their money. After foreclosure, the bank takes control of the property and sells it, either via an auction or the traditional real estate agent route. No matter the method of sale, these properties usually have a discount.
The problem with foreclosures is that they can need significant work. Banks are also in the business of making a profit. They want as much money from these foreclosed properties as possible! You still have to pay full closing costs and other fees. Generally, this means that homeowners who are looking to buy a home as their principal residence don’t do well with bank foreclosures.
However, there is a different type of post-foreclosure property that is better suited for someone looking to buy a home as their principal residence. HUD homes provide many advantages that other property acquisition channels don’t have. If you’re looking to become a homeowner soon, here’s your guide to HUD homes!
Why Should I Consider an HUD Home?
If you are looking for a home that will be your primary residence, you should look into HUD homes. These homes are foreclosure properties, but they are government-owned, not bank-owned. When a homeowner takes out an FHA mortgage, the bank lends the money, and the government (specifically, the Department of Housing and Urban Development) agrees to back these loans if the borrower defaults. So when someone defaults on an FHA loan, the property goes to the government, and the government gives the lender the loan’s balance.
As you might imagine, the government has no desire to hang on to these homes. They want to sell them as fast as possible, and, since the government has no shareholders, they can offer discounts and benefits that are unheard of through other real estate channels.
In particular, if you buy a HUD home, you get the following benefits:
- HUD will pay your closing costs (up to 5% of the purchase price of your home).
- HUD has already appraised the home, so if you finance through an FHA loan, you might be able to close faster.
- Depending on the home, you might be able to get up to 3% of the down payment covered.
- Earnest money deposits are low. You can sometimes put as little as $500 down.
- HUD prefers owner-occupants as opposed to real estate investors. If you’re sick of being outbid by investment companies, HUD properties are a great bet!
If you are looking for a deal in this red-hot housing market, you should consider HUD homes since the costs are so much lower!
Who is Eligible for an HUD Home?
The good news is that anyone can purchase a HUD home! There are no restrictions on income or wealth. You can also finance a HUD home just like you would any other property. FHA, VA, conventional, and FHA 203k loans are all welcome for HUD homes.
If you are a veteran, the cheapest mortgage option will be a VA loan since it requires no down payment. This loan type also has no private mortgage insurance. If you have a sub-optimal credit score or a small down payment, then you should look into FHA loans. With a score of 500 and 10% down, you can qualify for an FHA-backed loan! If your score is 580 and above, you can get away with as little as 3.5% down.
There are also many government programs available, such as the One-Dollar Program and the Good Neighbor Next Door Program, that help would-be homeowners of all walks of life turn their dreams into reality!
Almost anyone is eligible for a HUD home – even those who may not think they are! If you are looking to buy a home soon, you should check out HUDhomestore.
HUDhomestore: The Definitive Source for HUD Homes
You cannot find HUD homes through traditional real estate channels. The government lists these properties on their website, HUDhomestore. This fairly intuitive tool lets you search available properties with multiple parameters such as state, county, and city. Just like popular real estate websites, you can filter based on price and bedrooms.
However, unlike traditional real estate sites, you don’t message an agent and have them write up an offer that the seller decides if they want to accept or not. Instead, you must contact a HUD-registered broker. The registration that the broker has enables them to submit a bid on your behalf. Each listing has a bid submission deadline. If you get your offer submitted before the deadline, the HUD will consider it. Once the submission time closes, HUD employees will review all bids and award the home appropriately (which is usually the person with the highest bid).
Therefore, HUDhomestore and the process for buying a HUD home isn’t quite like your stereotypical real estate website. It’s more like an eBay for homes!
HUDhomestore and HUD Homes in 2020!
Whether you are in the market for a new principal residence or you are an investor looking for an excellent property, you would be well-advised to look into HUD homes. These homes often sell for below market value and have numerous perks associated with them. While some of these properties may need some work (they are foreclosures after all), the fact that you receive closing cost and down payment discounts should free some of your money to make any necessary repairs.
If you are looking for a new home, check out HUDhomestore and search for some HUD homes in your area today! The site is fast and intuitive to use!