Let Key Real Estate of Western New York LLC help you Buy a HUD Home!

You’ve heard about HUD Homes. You may have even seen one online and thought about buying. But what is a HUD Home and how does a person buy one. While it is true that some HUD Homes are in poor condition, the majority are well worth considering. Many can be a real bargain. This page contains general information and links to help those who are considering a HUD Home as a purchasing option.

FIRST: DON’T PAY FOR HUD HOME LISTINGS!!

HUD Hones are listed on the internet and accessible for free. Foreclosed homes are a different subject. Don’t pay for something that’s free. We have the web link for New York HUD Home listings below.

What is a HUD Home?

(Example: John Doe buys a house with an FHA loan. He gets the loan from ABC Bank. FHA insures the loan. Eventually John Doe runs into financial trouble and cannot pay his mortgage. ABC Bank forecloses on the home. FHA pays the bank the balance of the mortgage due. Then HUD takes possession of the property and tries to resell it.)

Who can buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors. In some areas there are even incentives for teachers, police and emergency medical personnel.

Click here to go directly to HUD's page "About Buying a HUD Home"

Click here to go to "The HUD Home Buying Guide" (This is a PDF document)

How do I buy a HUD Home?

The purchasing process is basically the same as any home listed for sale. Here are some simple steps. They are expanded on in the Buying Guide mentioned above.
 

1. Find a real estate agent that is registered to make offers on HUD Homes. The public cannot make offers directly, nor can just any real estate agent. Key Real Estate of Western New York is registered to make offers on HUD homes for both owner occupants and investors. Your agent should understand and be able to explain the purchasing process well. Remember, you are dealing with a government agency. HUD has very specific requirements regarding offers and paperwork. If your agent understands the process, you should have no problem. Key Real Estate has been through this process many times.

2. If you are planning to finance the purchase, get pre-approved first. If you have to get pre-approved after you make an acceptable offer you may not be able to  close on time. This could cost you the opportunity to buy the home. The contract package that gets sent to HUD’s vendor must have a pre-approval letter to be considered. In any home purchase pre-approval is very important. For cash purchasers, you must have proof of funds in the purchasers name.

3. Now that you have a qualified agent and are pre-approved or have the cash, keep your eyes open. While HUD allows the listing of their properties on agent’s websites the best most up to date information can be found here:

This link is for all counties in New York.

4. Once you see a home listed on the HUD site, contact your agent. The listing cycle on these homes is short. Usually form 7 to 10 days for owner occupant offers. Then they go to what is called investor status. You can still make an offer, but the pool of potential buyers increases.

5. Have the agent take you through the home. If you like what you see, the agent will begin the paperwork. Don’t let the paperwork discourage you. A qualified agent will know the process.

This is just a brief review of the process. Those who purchase HUD homes as owner occupants can do very well. Let us help you find your dream home. Whether it’s listed on the MLS or it’s a HUD Home, Key Real Estate of Western New York is here to help. Please contact us with any questions about purchasing and the HUD process.