Buying A HUD Home
Who Can Buy A HUD Home?
HUD homes are available for purchase by qualified buyers. They can either use cash or can qualify for a loan. There are some restrictions to buying a HUD Home. When first listed, homes are offered exclusively to owner-occupant buyers. These buyers are purchasing these home as a primary residence. Following that priority period for owner-occupants, unsold properties are available to all buyers, including investors.
Below are the five buyer types that HUD has identified for eligibility purposes. Please note that only a licensed real estate agent who is registered with HUD can place an offer on HUD Homestore. Since Basis Real Estate Group is registered with HUD as an approved Neighborhood Listing Broker (NLB), we can make an offer on your behalf if you qualify.
Owner Occupant
Qualified individuals have not purchased a HUD property as an owner-occupant within the past two (2) years. They can submit offers during the Exclusive or Extended periods. HUD gives priority to owner occupants. Buyers must occupy the property as their primary residence for at least 12 months. They cannot purchase a HUD home as an owner occupant if they intend to use it as a second home or a vacation house.
Good Neighbor Next Door
This program is available for law enforcement offers, teachers, firefighters, and emergency medical technicians. The goal of this program is to encourage these select buyers to become homeowners in certain revitalization areas. Buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. Eligible GNND buyers can find details on the program on the HUD’s website.
Investors
Individuals can purchase HUD homes for rental or resell investments. Unlike owner occupants, investors are not under restrictions of the number of homes they have purchased within a time-frame. Eligible investors can place offers only within the Extended period of listings.
Nonprofits
HUD-Approved nonprofits can purchase homes at a discount during the certain listing periods (Lottery, Exclusive, and Extended phases) in approved purchase areas. To learn more, visit the Nonprofit section of their website.
Government Agencies
HUD’s Dollar Homes initiative helps local governments address housing issues in their community. Government Agencies also need to register and obtain a valid HUD NAID. They can place offers during certain listing periods in approved purchase areas.
