Q: What is a HUD home?
A: It is basically a regular foreclosed property. Someone stopped paying their mortgage and so the bank took it back, but because it was a FHA loan, it was backed by the government. So the government paid off the bank and now the division of government called Housing and Urban Development is selling it.
Q: Are HUD homes available with the Section 8 program?
A: No. They are not connected with Section 8 subsidized housing. HUDs are always a straight sale to a home buyer, investor or a government agency.
Q: Are HUD homes ever for rent?
A: No. Beware of FRAUD – HUD homes are NEVER for rent!
Q: Are there any differences to buying a HUD home vs a regular home?
A: Yes. Regular homes can be fixed before closing if the bank requires something to be done before granting a mortgage. HUDs can’t be touched until after closing – which means you may need a rehab loan.
To see the differences side by side – click on this report:
The 10 Steps to Buying a HUD house VS a HUD Home