The HUD Home Store is like the website Zillow, only for homes owned by the United States Department of Housing and Urban Development (HUD). The HUD provides Americans with a number of housing opportunities. This website is one of them! Many different types of buyers can use the HUD Home Store to search, view, and purchase homes.
Homes That You Can Find on the HUD Home Store
The HUD Home Store is a home listing site but for single-family HUD REO (real estate owned) homes for sale. Any homes available through the site are being sold by the HUD. However, this website offers more than just the ability to view listings. It also contains relevant and useful information for potential homebuyers, such as helpful tips about the home-buying process. In addition to potential homebuyers, real estate brokers, as well as state and local governments, can use this site to view available properties.
Real estate brokers and other registered organizations can also utilize the HUD home store for more than just viewing listings. They can also submit offers for their clients. Every property is evaluated prior to being listed on the website. If a property is considered not eligible for sale to the public, then it is only available to certain organizations, such as the local government and certain non-profits to buy. These types of properties are often inside of revitalization areas.
Foreclosures are one of the main types of properties you will find on the HUD Home Store. However, these aren’t the only types of homes that are available. There are also cases where a property won’t be categorized with any particular program. This will be offered on a priority basis if this happens. The properties that are left over can be sold to any interested buyer to purchase, such as investors. However, the HUD first prioritizes buyers that are purchasing the home to live in as their primary residence. Finally, the other types of housing options you can find on this site, in addition to foreclosures, include:
- Dollar Home Program
- Good Neighbor Next Door (GNND) Homes
HUD Foreclosure Properties
Foreclosed properties make up the majority of listings on the HUD Home Store. Once a home is foreclosed on, the priority is to sell it to hopefully cover any losses that occurred. The HUD specifically owns these properties because the previous owner defaulted on an FHA-insured mortgage. The Federal Housing Administration (FHA) falls under the HUD. Mortgages backed by the FHA offer protections to lenders. Basically the HUD will take the hit for the loss so that lenders don’t have to. Foreclosure properties on this site can range from 1-unit up to sometimes 4-unit residences.
These Properties are Sold As-is
Foreclosed properties more often than not need repairs because they are sold in damaged condition. When a buyer purchases this type of property, they are agreeing to take full responsibility for any damages, as well as repairs and necessary updates. The HUD doesn’t update a property in any way after it is foreclosed upon.
Dollar Home Program
Foreclosure properties that have been listed on the HUD Home Store for 6 months or longer and are valued at less than $25,000 may be sold for $1. However, not just anyone can participate in this type of purchase. Instead, this type of transaction is only available to local governments. It is for good reason, though! Communities in need can directly benefit from $1 homes because they are typically later used for affordable housing.
In addition to that, local non-profit organizations that team up with the local government, may also sell these homes at a rate the buyer can afford. However, before anyone can live in these homes, the local government often has to spend time fixing it up! As mentioned before, as a result of both the low value and foreclosure, these types of properties often need a bit of repairs and updates before they can be used for housing.
Good Neighbor Next Door (GNND) Homes
The HUD offers a housing support opportunity known as the Good Neighbor Next Door (GNND) program. The way this program provides support is by offering a 50% discount off of the sale price of certain homes. Keep in mind that the number of properties that are listed on the site is in short supply. In addition to that, the listings are only available for seven days and therefore change on a weekly basis. The HUD Home Store is where potential homebuyers can view these types of properties.
It is important to note that there are a couple of requirements that need to be met in order to participate in this program. First, the homebuyer has to live in the home as their primary residence for at least three years (36 months). Second, the property has to be located in a revitalization area. Third, the program requires that the homebuyers sign both a note and a second mortgage equal to the amount of the discount. Lastly and most importantly, the GNND program is only available to individuals that work in one of the following professions:
- Law Enforcement Officers
- Teachers of Pre-K to 12th grade
- Emergency Medical Technicians (EMTs)
What’s also important to note is that even though the program requires buyers to sign an additional note/mortgage, repayment is not necessarily a part of the deal. That’s because no payments will be required so long as the program’s guidelines are satisfied.
Buyers that are interested in any of this program’s homes need to act quickly! In cases that multiple people want the same property, one of the potential buyers will be selected at random through a lottery. Other than that, there are instructions to follow in order to communicate interest in one of the properties.
The HUD Home Store is more than just a home listing site! It also provides homebuyers the opportunity for support by offering helpful tips and guidance. Properties that are available on this site are owned by the The United States Department of Housing and Urban Development (HUD) typically as a result of a foreclosure on an FHA loan. Homebuyers may turn to this site as an alternative to the traditional home buying process. However, local government, real estate brokers, and other organizations utilize this site as well. There are a variety of homes available through the HUD, like GNND and $1 Homes. However, the main type of property on this site is foreclosures. There might be a path to homeownership that you weren’t aware of before! You can check out the HUD Home Store online to review other options.