Buying HUD Home, Can You Do It?

Buying HUD home is for almost everyone. Any individual who can qualify for a mortgage or who can pay cash may buy HUD Home. Purchasers MUST have a pre-qualification letter from a lender or proof cash funds in the amount of or greater than the HUD home purchase.

HUD divides buyers into two groups, owner-occupants and investors. Owner-occupants have the initial advantage over investors.

Priority is given to purchasers who are owner-occupants for the first ten calendar days after a new listing is posted. Also, owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years.

HUD does not provide financing for the purchase HUD Homes. It is up the buyer to locate the financing through a bank or mortgage company. Before you bid on a property, be sure you do have secured financing. If you place winning bid and you cannot obtain financing within the specified time, you may lose the earnest money deposit that you submitted with your offer.

So, if you have the money or can qualify for loan, you can buy HUD Homes.

The photo below is an example of Baltimore HUD Homes. It is listed for $34,500. Currently there are only 25 HUD Homes in Maryland. It would be hard for an investor to make money with HUD homes in Maryland. There are usually less 10 listings for Baltimore HUD homes.

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