When mortgage lenders foreclose on an FHA insured mortgage home, they can file a claim with FHA to have HUD pay the balance due on the mortgage and assume ownership of the foreclosed property. These properties, which include single-family homes, townhomes, and condominiums, are then put up for sale as HUD Homes.

Because HUD can open the door to the home you want at the price you can afford. Here's how:

• You can get into a HUD Home with less cash than you'd need for most others because HUD may pay your closing costs.
• Many HUD Homes require only a 3% down payment instead of the usual 5-10%.
• HUD will pay the real estate broker's commission - up to 6% of sales price.
• HUD Homes are priced below fair market value because they are sold "as is" with no warranty.
• Many HUD Homes are ready for you to move into immediately.

Any qualified buyer can purchase a HUD Home, regardless of race, color, religion, sex, national origin, handicap, or familial status.

Not every HUD Home needs fixing up, but, when one does, it can be a real home bargain. For example, HUD may lower the price on the home to reflect the fact that the buyer will have to invest money to make improvements. You then might be able to buy a bigger house than you thought you could afford. Or, HUD might offer a special program (203K) that includes money for improvements as part of an FHA insured financing program. The broker will have details.

HUD makes no warranties on its homes. If any problem is discovered after you buy the home, it's your responsibility to fix it. For this reason, you may wish to have a professional inspect the home before making an offer on it.

A word about lead-based paint. HUD has initiated a nationwide effort to alert home buyers with young children to the hazards of older homes that may contain lead-based paint. If you are making an offer on a home constructed prior to 1978, you should be aware that there may be lead-based paint on the premises. The broker will give you a copy of an informative brochure entitled "Watch Out For Lead Paint Poisoning." You must also submit a lead-based paint addendum with your offer on the HUD Home. See also General Home Inspections, Environmental Inspections, and Other Inspections/Disclosures.

HUD Homes are sold through the newspaper and by real estate brokers who are registered with HUD.  Contact W F Snyder Company for more information.

Call Us!

Landlords!