The U.S. Department of Housing and Urban Development (HUD) is likely a familiar name if you have been looking for a home. Or, at least it should be! This government department provides several resources for locating reasonably priced, suitable housing. If you’re in the market for a new house, the “HUD Home Store” is an excellent resource. It’s an access point to official government housing aid programs and resources. You will find more information about how to use this tool in this article.
What Types of Property Can You Find on the HUD Home Store?
Even though HUD foreclosures are the store’s main focus, it also has a wide range of other properties. The website allows you to also look for:
- Homes for $1
- Good Neighbor Next Door (GNND) Homes
People can use the site’s search feature to find currently available HUD properties. It’s a great tool for people looking for homes. It can also be quite helpful for real estate brokers, state and local governments, and other government agencies.
The site is both a database of homes for sale and a marketplace where licensed real estate brokers and other registered organizations can make offers on behalf of their clients. Not only that, but the site also has useful tools, like counseling and guidance, to assist users throughout the home-buying process.
Typically, a property, which is often located in a designated revitalization area, is evaluated before being offered on the website. This evaluation will be used to see if the property may only be sold by approved non-profits or local governments. The property will be offered on a priority basis if it is not included under any special programs like the Dollar Home Program or GNND Homes. This means that people who will use the property as their main residence will be prioritized. If a property remains unsold after a specific timeframe, it will be made available to all potential homebuyers.
Foreclosed HUD Properties
This housing option stands out, even though there are many others available. These foreclosed properties range in size from one unit to four-unit. The Federal Housing Administration (FHA) insures loans that lenders offer. This agency is a part of HUD. In general, FHA-insured loans aim to protect lenders against any losses if the borrower can’t pay back their loan. Whenever a borrower defaults on an FHA-insured mortgage, HUD steps in to take possession of the property. They later sell it to recover any losses.
How to Buy One of These Properties
See one of these homes you like? Any HUD-approved real estate broker can help you make an offer on a home shown on the site. The information and experience brokers bring to the table make them an essential resource. Furthermore, due to employee shortages, it is hard for HUD to offer assistance with some other parts of the home-buying process that brokers usually handle.
When working with HUD to sell houses, real estate brokers must fill out certain documents. After completing the paperwork, it has to be sent to the local HUD Homeownership Center for processing. Soon after this is done, the broker will receive a name and an address identification number from HUD. Real estate brokers can then advertise HUD homes and make offers on them.
In What Status are These Properties?
Typically, homes in foreclosure are sold in their current condition. Therefore, in the event of damage, HUD will not foot the bill for repairs. Any maintenance or fixes after the sale will fall on the new owners.
Homes for $1
While there are many things that you can get for one dollar, local governments can get a house in foreclosure for the same price! Why is that important? Because when governments do that, they get to offer these houses to people at low prices. This opportunity is available through the HUD.
However, not just any property can qualify for such an opportunity. In addition to being in foreclosure, the property has to be worth a maximum of $25,000 and be listed for a minimum of six months. Usually, when local governments buy these properties, they carry out essential improvements. Eventually, they make these properties available to individuals and families who are eligible for housing assistance.
Good Neighbor Next Door (GNND) Homes
The purpose of the federal GNND program is to help people in specific professions afford housing. Under this program, buyers who qualify could get a half off discount of the market price of some houses in revitalization areas. However, the buyer must live in the house as their main home for at least 36 months.
To see what homes are now available under this program, visit the HUD Home Store. However, keep in mind that the selection is somewhat limited. Since each house is only on the market for a week, listings will be updated every 7 days. If you find a decent GNND property, you must submit your interest in it in accordance with the established rules.
What happens if several people express interest in the same house? In this case, a lottery will be used to choose the buyer of the property. This buyer must sign a second mortgage and a note for the discount. If the buyer stays in the property for a certain period, no interest or payments will be due.
Who Qualifies for This Program?
In order to benefit from the GNND program, you have to have a full-time job in one of four professions. You should be aware that the eligibility requirements can be different depending on which occupation an applicant has. Those professions include the following:
- Teachers (from pre-k to 12th grade)
- Law Enforcement Officers
- Emergency Medical Technicians (EMTs)
If you’re in the market for a new home, the HUD Home Store is a great resource. On this website, you can check out listings for GNND homes, $1 Homes, and standard HUD homes that have gone into foreclosure. If you browse this site carefully, you might find exactly what you need. Make sure to review all of your options that you can consider when looking for a place to live!