HUD Home Buying: Part Three

by SMD 

Part three of a four part guide to HUD Home Buying

Finding the Right HUD Home for You

There are some fundamental differences between HUD homes and homes on the private market that you should be aware of when going into the process. Since HUD homes are usually foreclosed and are built in a unique manner, they are going to be sold “as-is”. That is why many people like to look for HUD homes in their area. When you buy a home that has had little work done to it, it can become quite a fixer-up opportunity. Even if you don’t plan on fixing up a little bit, you can still take advantage of the great deal afforded by purchasing a home through HUD.

Chances are, there is a HUD home that is perfect for you. If you know there is a perfect home out there, the trick is to find it. How can you do this? You might want to take a chance and use a real estate agent to help you out. Their knowledge and connections can be quite a beneficial factor for your home search. In order for the real estate agent to be able to help you, you are going to have to provide some information to them. Communication is absolutely essential in finding the perfect home. Let the real estate agent know what sort of things are important to you. Would you like a short commute? Do you value a large home or a smaller, nicer one?

Sit down with you real estate agent and share a list of the things that you want. Real estate agents are very organized and they are likely to have a similar list of properties with things that match your wants and wishes. In addition to using the services of your real estate agent, you might also want to use the resources available on the internet that might help you find the perfect home. A great place to start is the U.S. Government HUD website  where you can find a listing of the available homes in your area.

You must be prepared for the type of homes that you will see. That’s another major difference in the private sector against buying a home through the government. Most of these homes will need a bit of improvement, but they will be in generally good condition. They are not perfect properties, but they do have plenty of potential. You will want to get all of the information that you can possibly get in regards to the home. The government is required to give you all of the information that you ask for about a home, so make sure to take full advantage of that.

If you do run into a home through HUD that you are interested in and you feel like you might not have enough money to fix it up, then there is help available. HUD realizes that most of its homes fall into the fixer-upper category and they also realize that many people don’t have a few thousand dollars lying around with which to make those repairs. With that in mind, there is a program for people who need a little cash for that purpose. The 203(k) programs enables people to borrow money and make these huge improvements. The money borrowed can be repaid as a part of the home mortgage, making it easier to keep things in order.

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