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Frequently
Asked HUD Questions
Select from the
following commonly asked questions about HUD homes:
What is
a HUD home?
Who can buy a HUD home?
Can I get a HUD home for free, or for one dollar?
How do I buy a HUD home?
Are HUD homes meant for low income people?
What are the income requirements?
How does HUD decide how much to charge for a HUD
home?
Can investors purchase HUD homes?
If my bid is accepted, can I have the home inspected?
What happens if I can't close the sale within the
time permitted by HUD?
How do I obtain a copy of a HUD list?
What
is a HUD home?
A HUD home may be a single family home, a townhouse, condominium
or other type of residence. The properties were deeded to
HUD by mortgage companies who had foreclosed on FHA-insured
mortgages. As a result, HUD must sell these homes in order
to recoup lost funds.
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Who
can buy a HUD home?
Anyone who has the money or can qualify for the necessary amount
of mortgage financing can purchase a HUD home. To begin the
process, click here to request an
HUD qualified real estate agent.
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Can
I get a HUD home for free, or for one dollar?
No. HUD acquires its properties through the foreclosure of
FHA-insured mortgages. One of HUD's many missions is to
maximize the amount of money returned to its insurance fund, which
it does by selling the properties at fair market value.
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How
do I buy a HUD home?
You must used a HUD approved real estate broker like Sun
National Real Estate in order to bid on the homes, view the
properties and answer questions regarding the homes. To begin the
process, click here to request an
HUD qualified real estate agent.
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Are
HUD homes meant for low-income people?
HUD homes come in a variety of price ranges, though most are
affordably priced, making them accessible to low and moderate
income families.
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What
are the income requirements?
If you make a cash purchase, there are no income
requirements.
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How
does HUD decide how much to charge for a HUD home?
The listing price of a HUD home is HUD's estimate of its fair
market value. HUD establishes value by comparing HUD
properties to similar properties sold within the community in the
previous six-month period.
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Can
investors purchase HUD homes?
Yes. However, HUD offers its properties to owner-occupants
for a period of time before making them available to investors.
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If
my bid is accepted, can I have the home inspected?
Yes. HUD allows a purchaser 15 days from the day of
acceptance for a home inspection. Even though HUD homes
are sold "AS-IS", it is still advisable to identify
any potential problems with the home. However should you
choose to have a home inspection, it is your sole
responsibility and expense to turn on the utilities for the
inspector.
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What
happens if I can't close the sale within the time permitted by
HUD?
You will probably have to pay fees for an extension of time,
usually in increments of 15 days.
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How
do I obtain a copy of a HUD list?
Click here for a free copy of
the Arizona HUD home list.
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