Using the Hudhomestore to buy a HUD home is easy.
If you’re looking to buy a HUD home, the Hudhomestore website is the best place to do it. It can be found here at hudhomestore.com. HUD homes are listed for sale at the site.
While anyone can buy a HUD home, you will need to get approved for a loan first.
Just like buying a house through the conventional route, all financing options are available for HUD homes. That includes conventional loans, FHA loans, VA loans, etc.
However, most people used an FHA loan to buy a HUD home due to its low down payment and credit score requirements.
What is the Hudhomestore?
The hudhomestore is a website operated by the U.S Department of Housing and Urban Development (HUD). The website can be found here at hudhomestore.com. Homes are listed there for sale after they have gone through foreclosures. Real estate agents and/or brokers can place bids on your behalf to buy a house.
What is a HUD home?
A HUD home (usually a 1 to 4 unit) is a property owned by HUD. Before a home became a HUD home, it was owned by a homebuyer who had purchased the home with an FHA loan. Once the borrower stopped paying his or her FHA loan, the home went to foreclosures. Then the home goes to HUD and becomes a HUD home.
Why you should buy a HUD home?
The benefits of buying a HUD home are huge. The main benefit is that most of these homes are priced below market value.
In addition, if you’re an EMS personnel, police officer, firefighter, or teachers, and live in revitalized areas and plan to live there for at least 36 months, HUD’s Good Neighbor Program offers HUD homes at a 50% discount. This program is listed at the hudhomestore website.
In addition, HUD offers other perks such as low down payment and sales allowances you can use to pay for moving, repair and closing costs. The low down payment, that is on top of the FHA financing that you may be qualified for.
Another huge benefit of buying a HUD home is that HUD gives preferences to buyers who intend to live in the home for at least one year. So this puts you ahead of investors.
Are you qualified to finance a HUD Home?
All financing options, including conventional loans, VA, and FHA loans, are available when it comes to buying a HUD home. But FHA loans are very popular among first time home buyers, due to its low requirements. But before you start searching for HUD homes through the Hudhomestore website, you should compare multiple loan offers so you can the best mortgage rates.
FHA loan requirements:
- 580 Minimum score
- 3.5% down payment
If your credit score is below 580, you can still be qualified but you’ll have to pay at least 10% down. Or, you can always take time to raise your credit score.
Don’t know what your credit score is, visit CreditSesame.
Steps to buy a HUD Home at the HUDhomestore website:
HUD homes can be hard to find if you don’t know where to look. In other words, they are not listed on conventional real estate websites such as Zillow or Redfin. Instead, they are listed at the HUDhomestore webiste, which can be found at hudhomestore.com. They also have HUD Homestore Mobile Apps.
Knowing these steps is important to mastering one of the best strategies to buy a house at below market or wholesale prices.
Step 1: Shop and compare home loans
Before you start searching your house through the hudhomestore site, it’s a good idea to
The worst thing that can happen is to find a house that you like to then realize that you cannot secure a home loan.
To get the best mortgage rates, you need to compare multiple loan offers. Buying a home is major expense, and getting the best rates could save you a lot of money. I can spend a lot of time talking about why it is a bad idea to only speak with one mortgage lender.
But when it comes to having multiple loan offers, I highly suggest LendingTree.
LendingTree is an online platform that connects you to several mortgage lenders without visiting a dozen bank branches.
LendingTree will provide you up to 5 loan offers from multiple lenders for free, so you can compare and make sure you get the best deal.
So if you’re at this step right now, go and compare current mortgage rates for free at LendingTree, and come back to this article.
Step 2: Finding a HUD Home at the HUDhomestore website.
To find a HUD home, simply go to the hudhomestore website. It can be found at hudhomestore.com.
There are three ways to find HUD homes on the hudhomestore website. The first way is through a map.
Once you on the website, you will see a map to the right with all of the states listed there. You simply look for your state and click on it to see all of the available HUD homes.
The hudhomestore site will show you a list of all of the HUD homes available for that particular state. It will include the photo of the HUD home, the address, the asking price, etc.
If you click on the photo of the house, you will be able to see more information of the property, including more photos, street views and information of the property.
Another way to find a house through the hudhomestore website is by clicking on the HUD Special program links.
The hudhomestore site specifically lists three HUD Special Programs: Good Neighbor Next Door; Nonprofits; $1 Homes-Government Sales. It specifically states on the hudhomestore website that if you click on any of these special programs, you will see available properties.
The third way to find a HUD home via the hudhomestore site is through the Search Properties. At the middle of the homepage, you will see a Search Properties where you can enter more detailed criteria.
Step 3: Buy your HUD home
Once you have found your desired HUD Home, it’s time to buy your HUD home.
But note that HUD homes are sold through an auction process. When you’re searching for the property through the hudhomestore site, it will tell you a deadline by which to submit your offer.
So if the deadline has not passed, submit your bid. Once it has passed, HUD reviews all offers. Just like any auction, the highest bid wins. If all of the offers are too low, HUD will extend the offer period and/or lower the asking price.
Note that you will not be able to place the bid yourself. Only real estate agents need to register to place bids on the hudhomestore website. You will need to find a real estate agent or you can specifically search for HUD registered agents at hudhomestore.com.
For more information on buying a home through the hudhomestore website, visit www.hudhomestore.com.
More on Buying a Home:
- How to Buy a House: A Complete Guide
- How Long Does It Take To Buy A House?
- Buying a Home for the First Time? Avoid These Mistakes.
- 10 First Time Home Buyer Mistakes to Avoid.
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