These are the most Frequently Asked Questions on HUD Homes.
If you have other questions not answered here, please feel free to email us -click here- or by phone at 640-6699. Jeff has years of experience selling HUD homes, 'knows the ratios' and all the little things that can help make your bid a successful bid. I'm here to help so don't be shy!  The only "dumb" question is the one that goes unasked.

So what exactly is A HUD Home?

Who can buy a HUD Home?

 Answer: Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home regardless of race, color, religion, sex, national origin, handicap, or familial status. Buyers must however (per HUD guidelines) work through a certified HUD real estate broker to bid, and they must have been pre-qualified for the loan amount they anticipate will be needed.

Are HUD Homes meant for people with low incomes?

Answer: Not specifically. HUD homes range in price, but most are affordable for low- and moderate-income Americans.  Since all HUD homes originally had a FHA mortgage, most are under the $100,000 mark and the old maximum FHA loan limit for polk county. Recently however there was one listed for as high as $130,000 but this is unusual.

Is it true I can get a HUD Home for a dollar?

Answer: No way.  HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.  This way HUD minimizes the loses they have to pay out on the insurance claim fund.

If a HUD Home needs repairs, will they make them?

Answer: No. HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it may, or can be a real bargain! For example, HUD's fair market as-is asking price on the home reflects the fact that the buyer will have to invest money to make improvements. Are they a "out right steal"? No. Can they be a great deal? Quite often, Yes.  HUD has even offered special  incentives such as an allowance to upgrade the property for loan approval, or a bonus for closing the sale early from time to time.  Keep in mind that on most sales, the buyer can request HUD to pay all or a portion of your financing and closing costs. We have all the details on this and any special promotions available. Just call, we've got the answers! Back to repairs...you are encouraged to get the home professionally inspected before you make an offer, primarily so you will know what repairs you may have to make BEFORE you submit your bid.

How do I actually buy a HUD home?

Answer: Start by finding a participating real estate agent like us. Your real estate agent must electronically submit your bid for you.
Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers submitted are reviewed and, basically, the highest net proceeds to HUD bid is accepted. If the home isn't sold in the initial Offer Periods, you can then submit a bid on any day (called daily bids) where they begin reviewing each day all bids submitted from the previous day up to 11:59 p.m. If your bid is acceptable to HUD, your bid acceptance will be posted on the internet. Your real estate agent then has 48 hours to get all your original paperwork to the M&M Contractor. Here in Florida, it goes to Atlanta, Georgia.

How do I find out what HUD homes are for sale?

Answer: Right here! We check and update our list of HUD Homes on a timely basis. If you see one that interests you, contact us by email or phone. Phone of course is faster and time may be of the essence! Or, of course you can contact any registered HUD agent or broker in the area who can show you the home. For the very latest "live" up to minute information on available properties you can visit the M&M Contractors internet site. New listings are posted every Thursday morning. Accepted bids are posted every day also around noon time.  Hud no longer runs any newspaper ad notifications of new listings as they have gone totally electronic. Isn't it great!  I just love it!!   Remember, We are the ONLY place we know of that gives you photo's of the homes and even a "mini review" of the homes we have checked out for you. Be sure and bookmark our site and visit often. Tell your friends too!

Can I buy a HUD home as an investment?

 Answer: Absolutely Yes. We work with several investment minded entrepreneurs and you may even see some of the homes they have bought and re-sold on our "homes we've sold" page.  However, HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including all investors.

How can I get a loan to buy a HUD Home?

Answer: HUD doesn't make loans directly. But we do know and work with several trustworthy mortgage loan counselors who offer many different loan programs that can help you buy a home. You can read about those programs here. A unique service that we offer clients is a short 20 minute or so meeting at our office. We find out a little about you, what your specific requirements are with regards to a mortgage loan and then will recommend the "best fit" type of loan and honest lenders who offer it locally. We will even contract them for you and can get you pre-qualified for free. Be very careful out there as there are literally ca-zillions of lenders (well maybe not that many but...) who will shoot you seeming great sounding rates without telling you all the details. Many have a slick and well rehearsed bait and switch routine that ultimately ends up in some pretty outrageous "junk" fees. Beware, its a jungle out there!

If my bid is accepted,  what happens next?

Answer: Your real estate agent (hopefully us) will help you through the paperwork process and the "transaction maze". You'll need to choose and officially apply with a lender for your loan as soon as possible. Inspections and an appraisal will be ordered and you'll be given an estimated settlement date, normally within 30-60 days, when the actual transaction closing will occur. We have an excellent page on this site to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information."

Can I make offers on two homes at the same time?

 Answer: Yes you can. Nothing in the HUD guidelines prohibits owner occupant multiple offers at the same time. And no, you won't end up being committed to buying two houses!  Here's how HUD works this; if both of your offers end up being the highest bids submitted they calculate which one "yields" them the best deal basically.  They also take into consideration how many other offers are made on the homes. Lets say on the one house, your the only bidder and your bid is "acceptable". The other home you bid on, your bid was the highest acceptable bid but there were other bids that were also "acceptable". HUD at their sole discretion may award you the first home (so they can sell two instead of one).  No, you do not have a choice or any say in the decision, sorry. There are other scenario's but let's not go there for now as it gets too complicated!! Investor bidders: don't try this unless you want both homes because you could find yourself "committed" to both!  

What else should I know about HUD homes ?

Answer: We encourage every homebuyer and homeowner to be a wise consumer, so be sure to read our other Consumer Information we have available on our site. Also, homes built before 1978 may have lead based paint, which can cause harm to your family especially children; so be sure to read about this hazard and about what you would can to do to correct it. If a Home you select to purchase was built prior to 1978 you and the seller will be required to sign an addendum to the contract acknowledging the facts and that you have received the consumer pamphlet on lead base paint. This applies to any home and not just HUD homes.