What’s a HUD home?
Are you thinking of buying a home in Charlotte? Owning a home is something most people look forward to. It is a symbol of stability and security. It is a place of refuge and retreat.
If you are looking for an affordable home for sale in Charlotte NC, you’ve probably heard of HUD owned homes. What’s a HUD home and why is it cheaper than the regular homes on the market? These are great questions, and we will answer them today.
HUD stands for U.S. Department of Housing and Urban Development. A home becomes a HUD home if it was acquired through an FHA insured mortgage, was foreclosed, and HUD bought it from the lender. They are available at a low price because the government wants to sell as quickly as possible.
Should you buy one?
HUD owned homes are great deals. It is excellent for people who have poor credit scores but would like to own a home. It is affordable enough that even first-time homebuyers can afford it.
For you to make an informed decision, here are five things you need to know before buying a HUD home.
1. HUD homes are sold as is. It means what you see is what you get, and you cannot do any repairs before closing. Its website states “ HUD does not warrant the condition of its properties and will not pay for the correction of defects of repairs.”
You’ll be responsible for any repairs and improvements to the home. That’s why one of the best investments you can do before buying a HUD home is to get a home inspection from a licensed professional home inspector.
2. HUD homes are for everyone. Anyone who has the needed amount may qualify for a loan to acquire a HUD home. Initially, the properties are offered to owner-occupant purchasers. After a specific time frame, the properties are made available for all, investors included.
3. You can find HUD homes at the HUD home store. This site is a central location where you can search for HUD properties for sale by state or ZIP code. You will not find HUD homes on popular real estate websites.
4. HUD homes are sold in an auction through a bidding process. You have to place bids through your agent, and there is a period where bids are accepted. When that time has ended, the bids are opened and whoever bids the highest wins.
5. Use a HUD licensed real-estate agent. Not all agents can help you acquire a HUD home. Only licensed agents and brokers registered with HUD can help you submit bids. HUD will notify your agent once your proposal is approved.
6. Get a preapproved funding. This part is essential, especially if you’ve found the house you want. Your agent only has 48 hours to send to HUD all the original documents. This time is extended on weekends and holidays. If you cannot provide the necessary documents on time, your bid will be forfeited, and the next highest bid wins.
The process of acquiring a HUD home is different compared to a regular Charlotte NC home for sale, but with the help of your real estate agent, you’ll soon be a homeowner.
Are you considering purchasing a HUD home? Call me, Nancy Braun, at (704) 997-3794 and have a conversation about the kind of home you're looking for.