| Finding a home with HUD | | | | might require 10-20% of the purchase price, first time |
| A HUD home is a property acquired by the US | | | | home buyers who qualify for an FHA loan require only |
| Department of Housing and Urban Development as a | | | | 3% down and sometimes less. In addition, FHA insured |
| result of a foreclosure that took place on an | | | | loans can mean lower closing costs and easier credit |
| FHA-insured mortgage. HUD becomes the property | | | | qualifications. |
| owner and offers it for sale to recover the loss on the | | | | Remember that FHA loans are not obtained through |
| foreclosure. Once HUD takes ownership of the home, | | | | the department directly, instead you will need to find an |
| it will sell it as quickly as possible at market value. | | | | approved FHA lender where the FHA can then insure |
| Sometimes a HUD home can be purchased at a | | | | the loan. |
| substantial discount if the property is eligible for one of | | | | When looking for a lender make sure to shop around |
| their discount sales programs like the popular Neighbor | | | | as there are many different loan products at different |
| Next Door Sales Program. | | | | terms. Also keep in mind that the terms can be |
| FHA Financing Options | | | | negotiable - its possible to waive a fee, have rates or |
| Once a potential property has been found, HUD can | | | | closing costs reduced just by asking. |
| recommend a free or low cost housing counselor who | | | | Hopefully this article provided some background on |
| can discuss options for first time home buyer loans. | | | | how HUD homes and FHA first time home buyer loans |
| Although HUD does not provide direct financing, it might | | | | can help people afford their first home. More detail can |
| be possible for buyers of HUD homes to qualify for a | | | | be found at the US Department of Housing and Urban |
| Federal Housing Administration (FHA) insured | | | | Development website. |
| mortgage to finance the purchase. Standard loans | | | | |