Almost everybody has a dream home. A place they like to wander through in their thoughts, choosing imaginary wallpaper and putting in imaginary skylights. But for too many people, dream homes remain just that–dreams. The reality of owning their own home never seems to become theirs.
That’s where the United States Department of Housing and Urban Development (HUD) comes into the picture. HUD is a government agency created to help make the American dream of homeownership a real possibility for everyone.
Since 1934, HUD’s Federal Housing Administration (FHA) has helped millions of Americans unlock the door to homeownership and have a home of their own. We do it by making home buying easier and more affordable. One way we can do this is by selling homes HUD owns in many communities throughout the U.S., at attractive prices and economical terms.
So that home you’ve been dreaming about just may be one you buy from HUD. But whether you decide on a HUD Home or not, you can use this guide to take you step by step through each stage of finding and buying your own home.
You will have lots of questions and countless issues to consider when you buy a home. You'll need someone that can help you through the process.Agood real estate agent is a good place to start.
The quality of local schools, neighborhood safety, the number of children in the area, and traffic patterns are just a few of the issues to be considered in shopping for the right home. A real estate professional can be helpful in guiding you to the right source for facts and useful information.
And all the financial details that can seem so mind-boggling to first-time home buyers are something the agent deals with every day. He or she will help you figure the price range you can afford, explain the different types of mortgages, guide you through the paperwork, and be there to answer last-minute questions when you sign the final papers at closing.
If you're buying a HUD Home, you're required to use a real estate agent. While purchasing a HUD Home may be easier than many private real estate transactions, there are still some requirements which must be met–certain forms that must be used, and procedures that must be followed. But these requirements are clearly stated in advance, and the real estate agent will be there to help you through it all.
There are no negotiations between buyer and seller when you buy a HUD Home. This can be a real advantage. There's no haggling about price–everything is spelled out in black and white. What's more, your offer is responded to promptly, and if it's accepted, closing on the home usually will occur within 30-60 days.
Finding a HUD-approved selling broker is not difficult, especially since so many real estate brokers are happy to sell HUD Homes. All you need to do is to call a few brokers who work in the area you're interested in and you'll find someone willing and experienced. Some brokers specifically advertise their desire to sell HUD Homes in the real estate sections of newspapers.
Best of all, the valuable help you'll receive from the real estate agent is usually free! In most instances, agents get their sales commission from the home seller, not you, the buyer. Even if you're buying a HUD Home, HUD will pay the broker's commission.
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HUD Online Glossary (Source: http://www.hud.gov - July 2006)
HUD Common Questions (Source: http://www.hud.gov - July 2006)
How can I buy a HUD Home?
How do members of the housing industry access the full knowledge base?
How can FHA help me buy a home?
What are the basic eligibility requirements for FHA financing?
What impact does the recent IRS ruling have on certain down payment assistance providers?
What is the American Dream Down Payment Initiative?
How can a homebuyer get down payment or closing cost assistance?
How can FHA assist me in lowering my energy costs?
Where can I obtain a list of HUD Homes for sale?
Can an individual purchase a HUD Home for a dollar?
When can I stop paying my monthly FHA mortgage insurance premium?
How do I find non-profits who operate down payment programs?
How does HUD define a first time homebuyer?
What is the Streamlined k program?
Does HUD/FHA have grant programs available for home repair?
How can I finance the purchase of a HUD Home?
Am I eligible for a mortgage insurance refund?
How do lenders document gifts given in the form of cash?
How do I become a mortgage insurance refund tracer?
How can a police officer obtain a HUD Home at a discount?
Where can I obtain FHA forms and publications?
What FHA programs are available to purchase a manufactured or mobile home?
What is the primary FHA mortgage insurance program?
How much can a lender charge on an FHA loan?
(En Espanol) Where can I obtain a list of HUD Homes for sale?
Can I use an FHA mortgage to purchase a condominium?
Is a borrower eligible for FHA financing if they have participated in consumer credit counseling?
Can gift funds come from the seller, lender or other interested party?
Can I make major improvements to my home without getting prior approval from FHA?
What is the FHA mortgage limit in my area?
Are there age requirements for borrowers using FHA financing?
If I am listed in the Credit Alert or CAIVRS system, what does that mean?
Can I rent a HUD home?
What is the Low/Moderate Income Families Program?
Are there FHA programs available for single parents?
Do the loan limits include the Upfront MIP?
Where can I obtain copies of FHA policy documents?
What can I do if my manufactured home has defects that need to be repaired?
Can I do a FHA refinance if I own the property, but am not named on the existing loan?
How do I obtain information about the payoff or servicing of a HUD Nehemiah Housing Opportunity Grant?
What is the primary FHA program for home repair?
Where can I find FHA's policy on gift funds?
Can investors assume FHA loans?
How can a teacher obtain a HUD Home at a discount?
Is there a quick and inexpensive option to refinance my FHA mortgage?
Can I receive a loan from a family member instead of a gift?
What foreclosure prevention options are available on non-FHA insured mortgages?
How can a firefighter or EMT purchase a HUD Home at a discount?
How do I find an FHA approved lender?
Can borrowers who do their own repairs under Section 203(k) receive cash reimbursement for their labor?
Can I use FHA financing to acquire a second home?
Is it acceptable to get a loan for the downpayment?
What is the Section 235 Assistance program?
What are the penalties for a HUD Home owner-occupant purchaser that does not occupy the property?
How do I use a bridal registry account for my downpayment?
Who is eligible for a HECM loan?
When should case numbers be canceled?
What rate do borrowers qualify at when using an ARM loan?
When can I stop paying my monthly private mortgage insurance?
What is the Housing Voucher homeownership program?
Can I use the Streamline K program to purchase a HUD home?
Is there a special HUD program that allows hurricane evacuees to purchase HUD homes?
What is a HUD revitalization area?
Does FHA allow unsecured loans to be used toward the downpayment?
What FHA program allows me to lower my initial monthly mortgage payments?
What FHA program allows for a reduction of interest rates?
Can I "rent to own" a HUD home?
What property improvement programs are available through FHA?
How do lenders document cash assets?
How can FHA help me if I am behind in my mortgage payments?
Can FHA clear the CAIVRS if I have evidence supporting the debt is paid off?
Must premium pricing be disclosed to the buyer?
What are the requirements for a teacher to purchase under the Teacher Next Door Program?
What is the Good Faith Estimate?
What is the primary FHA rehabilitation mortgage insurance program?
How does HUD determine the sales price of a HUD Home?
Why is a HUD Home not listed for sale?
Does FHA have special programs for Veterans?
Does FHA allow investor participation in the 203(k) or Streamline K programs?
Where can I obtain a list of government properties for sale?
Where can I find free housing counseling services?
What if I am behind in my mortgage payments and my lender won't talk to me?
Are there restrictions on when I can pre-pay or payoff my FHA mortgage?
(En Espanol) What are the basic eligibility requirements for FHA financing?
Where can I find information about a lenders' responsibility under RESPA?
What does FHA offer to military veterans?
Do I have to pay a fee to collect my mortgage insurance refund?
Can I get my HUD Home earnest money back when my loan is denied?
How do I figure how much money the lender is allowed to require in my escrow account?
Can I still obtain a FHA reverse mortgage if I lost a home through divorce?
Who gets the MIP refund if a home is sold by assumption?
How do I make my rental property available for Section 8 tenants?
Are lenders restricted from originating FHA loans for their employees?
How does HUD determine the winning bidder on HUD Home sales?
(En Espanol) How can FHA help me buy a home?
Can an investor bid on a HUD Home?
How can I obtain a copy of the appraisal on a HUD Home?
How much is counted for the borrower's labor when calculating sweat equity?
Do FHA mortgage limits automatically increase after Freddie Mac's annual mortgage limit adjustment?
What FHA program allows me to pay my mortgage off early?
Will FHA allow a Streamline Refinance of a loan by an investor?
Will HUD contribute to seller-funded down payment assistance programs on the purchase of a HUD Home?
As a senior citizen how can I convert the equity in my home into income?
What is a self-help agreement?
Can lenders collect a fee for originating a streamline refinance that gets transferred to another lender prior to closing?
How do I place a bid on a HUD Home?
What is the FHA Urban Renewal Program?
How do I lodge a complaint about the condition of a new home?
Can a lender process a 203(k) rehabilitation mortgage for an investor?
What are the counseling requirements on an FHA reverse mortgage?
For an existing property, what are the minimum distances allowed by FHA between a well and a septic tank?
Must FHA be notified when an FHA reverse mortgage borrower dies?
How do I lodge a complaint about the condition of an existing home?
How can I file a complaint about a settlement or closing issue?
How can I obtain a rental assistance voucher that can be used anywhere?
Where can I obtain information on prepayment penalties for FHA mortgages?
How does a real estate agent register to sell HUD Homes?
How do I document the value of personal property sold for funds to close?
Can a Section 203(k) loan be refinanced to a different loan type?
How do I obtain more information about Regulation Z?
What is the status of a particular HUD Home?
How do I obtain from HUD copies of documents related to my FHA insured loan?
How do I obtain a payoff or subordination of a second lien held by HUD?
How can I have the utilities turned on in a HUD Home prior to closing?
What is mortgage insurance for disaster victims (Section 203h)?
How can I find a list of non-profit agencies that are approved to do business with FHA?
Where can I find information about HUD's multifamily (5 or more housing units) housing programs?
(En Espanol) How can I buy a HUD home?
Are there exceptions to the loss of an earnest money deposit on a HUD Home?
When can interest rate adjustments be made on FHA adjustable rate mortgages?
Where can I find policy governing rent credit?
When is a HUD Homes sales contract ratified?
Who do I contact for support on Title I servicing issues?
How do I know if I won the bid on a HUD Home?
Is a hurricane evacuee who is presently renting a HUD home eligible to buy the home?
How do I file a complaint against a lender who is not FHA approved?
How can I get information about Rural Development programs?
How can I apply for a public housing unit?
How are bids on HUD Homes processed?
How do I report fraud related to a HUD/FHA transaction?
Can an investor participate in FHA's 203(k) Rehabilitation Program?
Where can I find general information about assistance for victims of hurricanes?
How can I find a real estate agent approved to sell HUD Homes?
How does the lender disburse the remaining 203(k) escrow?
Where can I find a list of HUD-approved non-profits?
Are there programs for experimental housing?
What programs are available for outlying areas?
How can a non-profit organization purchase a HUD Home at a discount?
What is the FHA Urban Renewal Rehabilitation Program?
What programs are available for Native Americans on tribal land?
Can the lender collect from the borrower amounts the lender advanced to HUD for a required principal reduction?
Where can I find information about renting or building apartments and other multifamily housing?
How do I request copies of documents from HUD?
What are my rights when obtaining an adjustable rate mortgage?
Are there special programs for home purchases near military bases?
What are Fair Market Rents?
How can my non-profit organization work with FHA programs?
Can a Section 235 loan be refinanced?
Can lenders process loans for HUD employees?
What disaster relief is available for public housing tenants?
How can I find a property that provides below market rents?
What is the mortgage insurance for service members program?
How do I pay rent on a HUD Home?
How does a real estate agent obtain a Name Address Identifier Number (NAID)?
Can a tenant occupy an FHA property through the conveyance process to HUD?
How do I submit my annual certification for my Next Door property?
What disaster relief is available for homes with FHA insurance?
What FHA program allows for purchases on Indian Reservations?
What if I have a problem with the servicing of my escrow account?
How can I get information on HUD's homeless programs?
How do I cancel a HUD Homes sales contract?
How do I request a payoff or subordination of my Next Door lien?
What contracting opportunities are available for HUD Homes?
How do I document assets that were acquired from the sale of a home?
What programs are available in older, declining areas?
How can I extend a HUD Homes sales contract?
Can I subordinate HUD's lien on a Next Door property?
Are funds saved through savings clubs eligible?
How do I deal with a servicing issue in which the loan is not FHA insured?
What disaster relief is available for homes not FHA insured?
How can I obtain mortgage account information from my lender?
What can I do if my servicing lender is handling my escrow account properly?
What rights do I have as a renter or tenant?
Who do I contact if a HUD Home was not properly winterized?
HUD or FHA is garnishing my tax return, how can I get more information?
How do I lodge a complaint about the company selling HUD Homes?
How can I get more information on consumer protection?
What is the status of my occupied conveyance request?
How can I file a housing discrimination complaint?
How do I obtain FHA or HUD information in Spanish?
How do I file a complaint against a national bank?
How do I file a complaint against a local housing program or provider?
(En Espanol) Am I eligible for a mortgage insurance refund?
How do I collect on a bill or lien attached to a HUD Home?
Where can I get assistance if my identify has been stolen?
How can I lodge a complaint involving a Veterans Administration loan?
Who do I contact to pay off my property improvement loan?
How do I file a complaint against a Federal Savings and Loan?
How do I file a complaint against a credit union?
How do I file a complaint against my public housing agency or landlord who receives rent subsidy from HUD?