When Buying A HUD Home…

Written by admin   // January 27, 2011   // 0 Comments

Lisa Williams

by Lisa Williams, CRS, GRI, ABR

Williams & Associates Realty

1. Do I need a realtor to place a bid for me? Yes, please contact a broker who is registered to bid with HUD. (Lisa Williams is a registered HUD Broker)

2. Do owner-occupants have a priority in bidding? Yes, there is an initial owner-occupant period set aside at the beginning of the bid process.

3. What are my financing options? You can use FHA or conventional financing to purchase a HUD home. You may also purchase a property with cash.

4. How can I locate a home in a particular area (e.g. by zip code or state)? You may conduct a search by visiting www.hudhomestore.com.

5. I am an investor. When can I bid on a HUD property? During the exclusive listing period, Owner Occupants may submit bids. At the conclusion of this exclusive listing priority period, all general public bids will be accepted.

6. Can a buyer elect to use his or her own closing agent? The purchaser can elect to choose any closing agent. However, if the purchaser elects not to use HUD’s closing agent to perform the closing, HUD will not pay for the closing agent to conduct the closing.

7. If I don’t like the home that I chose, can I decline the acceptance? The purchase of the property may be declined at any time, but may be subject to earnest money forfeiture.

8. What is the earnest money held for, and can I get it back? Earnest Money is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious about wanting to complete the purchase.

9. When can I complete a home inspection on the property? All purchasers are strongly encouraged to perform a walk through inspection at or near the date of your contract acceptance and, again, immediately PRIOR to closing.

10. Can I make repairs to the property if needed prior to purchase? HUD properties are sold as-is with no warranty. No repairs should be performed on a property until after the new owner has taken possession of the property.

11. Does HUD give money for repairs to the property? No. However, a homebuyer may wish to utilize an FHA 203K streamline loan to finance repairs on the property.

12. How much money do I have to put down on a home? The answer depends on the type of financing being used. For FHA financed properties, the down payment is 3 ½ percent (3.5%) of the sales price.

Some FAQ’s U.S. Department of Housing and Urban Development: August 2010

Feel free to contact Lisa Williams, CRS, GRI, ABR of Williams & Associates Realty for more information at (414) 463-9948 or www.williams-realtors.com

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