Housing and Urban Development (HUD) properties present unique opportunities for homebuyers. By purchasing a previously foreclosed home, you might save money on the sale and mortgage. But is a HUD home the right choice for you? Here are some of the key benefits to buying a HUD home:
HUD wants to recoup the cost of the foreclosure as soon as possible. This translates into lower sale prices. While each property goes through an appraisal process to determine its value, the purchase price is usually under the market average for comparable homes.
HUD homes are sold through auction. The auction process gives special priority to residential buyers by granting them a 30-day period to bid on the home. After that, the auction will open up to investors as well. This head start can help you get a great deal on a home without worrying about an investor taking it at the last second.
Closing costs are a major expense when buying and selling a home. As an incentive to homebuyers, HUD spends a certain percentage of the home's purchase price to help cover closing costs. This can save a homebuyer thousands of dollars compared to buying a traditional home.
With financing, buying a HUD home is like a traditional home purchase. You can choose from many loan options and mortgage providers. In certain circumstances, buying a HUD home means getting a loan with a smaller down payment. HUD wants to sell the property as soon as possible, so they offer options for low down payments to encourage new buyers.
If you're considering a HUD home, keep these benefits in mind. While it might not be the right choice for every situation, for many homebuyers, the incentives and special perks can greatly outweigh possible drawbacks.
I have been a full time Realtor in Brunswick County since 1994, after moving here from the Charlotte area. Prior to that, I graduated from UNC Chapel Hill and worked as a press photographer in Fayetteville and Monroe, NC. It has been wonderful living and working in this community and raising my family here. I feel a little bit guilty for enjoying sunrises and sunsets over the ocean while friends inland can only see that while on vacation! I hope I can help you find your own bit of paradise here at the coast! I have always made every effort to treat clients as I would members of my own family... with honesty, integrity, and the benefit of my considerable experience! Let's see how I can help you!
