(DailyDig.com) – The U.S. Department of Housing and Urban Development (HUD) has different tools and resources for which American citizens can find affordable housing. One of these resources is the HUD Home Store.
What is the HUD Home Store?
HUD Home Store is a government website that lists HUD homes. The U.S. Department of Housing and Urban Development sells these homes to the public after seizing them from owners who have defaulted on their FHA-insured mortgages. HUD lists these homes at HUDHomestore.Gov to recoup the monetary loss that results from the foreclosure.
According to the balance, homebuyers using this site can filter options by state, county, or ZIP code. The website also allows them to select their homes based on price range or according to the number of bedrooms and bathrooms. The listing also includes comprehensive details about the property, disclosure statements, and contact details for everyone involved in the sale.
Homebuyers can also access successful bids made in the past 14 days and know how much they should bid for a home they desire. The website also has valuable links like HUD.Gov resources, articles, HUD-approved lenders, terms, and acronyms to help the buyer in the purchase process.
Please note homebuyers buying a home through this website must use a HUD-approved real estate agent while bidding on a property. The website provides a list of approved brokers through the ” Find a Registered HUD Broker” search option.
How to Buy a Home from the HUD Home Store
According to Bankrate, buying a HUD home is similar to any other home-buying process. Therefore, the process starts with pre-approval for a mortgage for buyers who cannot afford to buy the property in cash. The pre-approval letter gives HUD an idea of how much money the buyer can borrow to buy the home and showcases their seriousness about buying it.
With the pre-approval letter, prospective buyers can browse the listed HUD Homes to get an idea of what’s available. Homebuyers should pay for a home inspection before making an offer. This helps them make an offer contingent on the home inspection findings and avoid costly repairs in the future.
Prospective homebuyers should involve a HUD-approved real estate broker to submit their bid. They will learn whether their bid has been accepted or rejected once the bidding process is completed. Bid winners have 30 to 60 days to finalize the financing and purchase.
Please note HUD has established strict deadlines and a lot of paperwork to complete a HUD home-buying process. That’s why it’s crucial to hire a HUD-approved home real estate agent to help you through this process.
Qualification for HUD Homes
There are only two requirements needed to buy a HUD Home, according to The Mortgage Reports. These requirements include:
- They should be planning to live at the HUD home for a minimum of 12 months after buying it
- They should not have purchased a HUD home within the last 24 months
Investors should only bid after 30 days unless they have a bid accepted. This rule allows owner-occupants to secure these homes before investors get their hands on them.
Other HUD Programs for Affordable Housing
There are other HUD programs for affordable housing apart from the HUD home store. Some of the programs listed by Local Housing Solutions are as follows:
- The Low-Income Housing Tax Credit
- The Housing Choice Voucher
- Section 8 Project
- Public housing operating funds
- Choice neighborhoods
These programs have varying eligibility requirements that applicants should meet. Ensure that you familiarize yourself with them to maximize your chances of getting the housing assistance you need.
There is a variety of homes low-income homebuyers can choose from the HUD home store. However, it’s recommended to follow the requirements needed in the bidding process, such as conducting a home inspection and hiring an approved real estate agent to get a property that suits you. There are also other HUD programs for affordable housing to choose from. It’s crucial to seek help from your local HUD program before you decide on a specific program.
Copyright 2022, DailyDig.com