HUD Home Frequently Asked Questions

Who can buy HUD homes?
Almost anybody!  There are no income restrictions. Owner-occupants and investors can buy them. You just need to be at least 18 years old, have a social security number, a pre-qualification letter or a proof of funds, a mailing address, phone number, and an agent registered to bid on HUD homes (Every agent with our company is registered).

Where can I go to find HUD homes?
The best place to go to find available HUD homes is www.HUDhomestore.com

Where can I get the contract and more information about HUD homes?
After you win a bid, your Realtor will receive an email with a blank pdf fill-able contract. Your Realtor will fill out the contract then arrange a meeting with you to sign and initial in the appropriate blanks. You can also visit http://sageacq.com/denver-hoc-region/ to view a blank copy of all contracts that could potentially be used. We encourage your Realtor to use the ones that will be emailed to them to avoid commonly made errors. You can also always call us for more details!

Where can I find the prices for HUD homes?
You can always call us at (817)200-7987.  You can also easily search for the property at  www.HUDhomestore.com to find out any information.  If a property is not on  www.HUDhomestore.com that means it is most likely under contract.

How can I find information on a HUD property?
You can always call us at (817)200-7987.  You can also easily search for the property on www.HUDhomestore.com to find out any information.  If a property is not on  www.HUDhomestore.com that means it is most likely under contract.

How much should I have for a down payment on a HUD property?
This is entirely up to what type of loan you are getting and your lender.  Feel free to give our preferred Lender a call, they've closed on hundreds of HUD deals!

 Team Alex Varela with Prime Lending 972-250-9603 or visit their website at https://lo.primelending.com/avarela

How can I find a property in a certain school district?
One of the best and easiest to use places I have found is www.greatschools.org You can just type in the property address of the home that interests you and it gives you an easy to read map of what district that home is in. 

What are the differences from a HUD home and a regular home sale?
There are very few differences between a HUD home and a typical home sale.  One of the differences is, HUD does not allow any repairs to be done to the property before it has closed.  They also have policies about how long you need to live in the property as your main residence.  There are certain other aspects that you may want to discuss with your lender and/or agent.

What do I need to do to be considered an owner-occupant?
To be an owner-occupant you need to live in the property as your PRIMARY residence for at least 12 months.  You also cannot have purchased a HUD home has an owner-occupant within the last 2 years (24 months).  

I am an investor.  How can I get around the owner-occupant rules?
You can't and shouldn't.  Remember, HUD is a federal agency who has their own police force whose sole job is to find people who are breaking HUD rules.  It's not worth being charged with a felony by the government.  

Where can I find more homes that meet my criteria?
If you are interested in purchasing a HUD home, you should take a minute or two out of your day every day to check www.HUDhomestore.com  You can see new listings or properties that have been returned to the market and get a leg up on your competition.

How can I see inside a property?
You need a real estate agent to go with you to the property to let you in.  You are not able to go to a property by yourself.  You must have an agent with you.

Can I place an offer on a HUD property without the help of an agent?
No.  An agent registered with HUD needs to place your offer for you.  They are needed to help make the transaction smoother and you will be grateful for their presence!  When calling an agent, make sure that they or their broker has a NAID number.  If they don't, or need to search around for it, you probably don't want to work with them when purchasing a HUD home.

Will HUD directly finance my loan on a property?
No.  HUD only sells properties.  They will indirectly be backing your loan if you choose an FHA loan, but do not expect them to give you a loan.  You will need to find a lender and qualify through them.

Where can I go to a loan on a property?
Almost any lender can give a loan on a HUD home.  We recommend you ask how many HUD homes they have closed on in the last 12 months before working with them as lenders who do not have as much experience with HUD homes can have major problems that can cost you a lot of money, time and frustration.  Look for a lender that has closed at least 3 HUD homes a month if you can.

Where can I go to a loan on a manufactured home with a list price under $50,000?
These are very difficult to get and most large banks such as Chase, Wells Fargo, Prime Lending, and Bank of America will not loan on these.  Your best bet is to find small banks or credit unions and see if they will do the loan.

What does "AS-IS' mean?
This means that the seller (HUD) won't make any repairs to a property.  You are buying the property as it is.  You are able to do inspections on the property after your contract is executed.

How do I see what repairs a property needs?
Go to www.HUDhomestore.com and search the property you are interested in.  Click on the property case number and go to the Addendum tab (you will automatically be put in the Property Info tab).  You are specifically looking for the Property Condition Report (PCR), Property Listing Disclosure,  and any document explaining a repair escrow.

How can I tell if a property qualifies for FHA financing?
Go to www.HUDhomestore.com and search the property you are interested in.  Click on the property case number and look for FHA Financing.  If a property is marked as IN (Insured) or IE (Insured Escrow) it qualifies for FHA financing.  If a property is marked as UI (Uninsured) you will not be able to use FHA financing to purchase the house.

www.HUDhomestore.com won't pull up the property I am interested in.  What does that mean?
This means that the property is no longer actively on the market.  It is most likely under contract now, but it may be pulled off for various other reasons.  Properties can come back on the market at any point which is why it is important to look at the list every day.

What is the Good Neighbor Next Door Program and how do I participate?
This is a program where police officers, firefighters, EMT's and teachers are able to purchase specific homes for 50% of their list price.  Only certain homes meet the specific criteria that this program requires and very few are in the Ft Worth area.  To find them, go to www.HUDhomestore.com search in Texas and choose the Buyer Type as Good Neighbor Next Door.

Where can I find an agent that is registered with HUD?
You can search for agents in your area using www.HUDhomestore.com or call the listing broker.

How can I tell when a property is available for investors to bid?
Investors can only bid during the Extended period.  Search for the property on www.HUDhomestore.com.  If a property is in the exclusive period, click on the property case number and look for the Period Deadline under the Property Info tab.  The day after the period deadline is when investors can bid if the property has not gone under contract before then.

I need to change the price on the bid I submitted with my agent.  How and when can I do this?
You can only change your bid if they have not been reviewed by the Asset Manager.  You can withdraw or change your bid at any point in time before they have been removed by calling your agent.

What about mineral rights?
If the mineral rights were attached a property before foreclosure, then they are still attached and the new buyer receives them.  There is not a reliable way to know for sure unless someone privately hires a land man.  Normal title searches don't specifically look at mineral rights.  Typically, people find out when a gas or oil company wants to lease them.  Checking with neighbors is a good way to find out if the minerals are being leased out.  If a lease was signed on a property before foreclosure and minerals are still attached then the new owner will need to inform the gas company that ownership has changed in order to begin receiving payments.  The new owner will not receive any signing bonus.

How does a buyer or agent know how many acres comes with a property?
Most of the time, the tax value is just a rough estimate for HUD homes on how many acres come with the house.  HUD does not perform surveys on the properties so the buyer must hire a surveyor to come to the property and complete a survey.

HUD is required to complete an FHA appraisal on a property before it can be listed.  How can we find out what that appraisal value is?
HUD no longer releases the FHA Appraisal Value.

Since HUD has already completed an appraisal on a property can we use it for any type of loan?
HUD no longer allows any buyer to use their FHA appraisal. The buyer or the lender will need to order another appraisal at the buyer's (or sometimes the lender's) cost.

Where can I go to see what HUD has been up to?
HUD has a public blog that can be found at http://blog.hud.gov/!

How long does a home sit vacant before HUD sells it?
From the time HUD receives the property, most of the time the process from acquisition to listing the house on the open market takes between 2 weeks and 1 month. If a home is sitting vacant for an extended period of time, it is likely that the previous owners still own it and it has not yet gone through foreclosure.

How long does it take for the foreclosing bank to file a claim on the mortgage insurance and transfer ownership to HUD?
It is almost instantaneous.