Housing And Urban Development Homes Can Provide A Consumer Bargain

As a part of the burst of the housing bubble and other economic problems, the US government finds itself owning many homes due to owners defaulting on their guaranteed loan. As a result the Department of Housing and Urban Development, HUD offers these homes for sale. While there is a suggested price that is often below market value, the government also takes bids on these properties, providing an even better bargain for buyers.

These homes are primarily single family homes; however, multifamily housing, including duplexes, triplexes and quadruplexes are also included. In most cases, the properties are being sold at a loss to the government. These houses offer opportunities for families that might not be able to enter into home ownership through other means.

Practically anyone can buy one of these homes, as long as they can qualify for a mortgage or have the cash to buy the home. Buyers who plan to be an owner occupant are given first chance to buy these homes. If a home does not sell in the initial period, it is available to any buyer, including those wanting to purchase it as an investment.

Buyers without cash on hand must secure financing for the home. HUD does not directly provide financing, although it is possible to qualify for an FHA mortgage to buy the home. The FHA program can help to reduce the down payment one must make on the home by providing a guaranteed loan for the new buyer as well.

In certain areas, there is an additional discount allowed for individuals in certain careers. These include teachers, policemen, firefighters, EMTs, local government workers and employees of nonprofits. The program is available in certain designated Revitalization Areas. If employed in one of these fields, the discounts offered can be significant.

Potential buyers will want to watch for these homes that display a special sign before the sale begins. The consumer will want to contact a realtor who can place a bid on the property. In addition, HUD lists the homes offered for sale on its website in a searchable form.

These homes are sold without warranty. The buyer becomes responsible for correcting defects and making repairs as needed. The inspection can ensure the buyer is not responsible for a large heater repair bill the first winter of occupancy. Inspections are a part of the due diligence recommended for any home buyer, but especially for those considering these houses.