How To Buy HUD Homes

By: Jordan Meyers

Break Studios Contributing Writer

Ready to learn how to buy HUD homes? Purchasing a home through the United States Department of Housing and Urban Development (HUD) is a good way to save money on a property. Here’s how you can purchase a HUD home for you and your family.

Peruse the HUD home listings. You can find listings of HUD homes for sale on the HUD website or by checking with your local HUD office. Typically, listings of HUD homes are separated by state for easy accessibility.
Contact a real estate agent to buy a HUD home. You’ll want to get a good look at a home that interests you before you move forward in the process. To schedule an appointment to see a HUD property, you’ll need to get in touch with a HUD-approved real estate agent. You won’t be able to buy HUD homes if you skip this step, as HUD restricts bidding to approved agents.
Bid on a HUD home. Decide on a bid to offer as part of HUD’s auction-style home buying process and have your agent submit it. Your agent may offer advice on bidding amounts and fill you in on what to expect.
Learn whether you won. You can expect to learn whether you are the winning bidder soon after HUD closes the bidding period on the home you chose. In general, winners receive notice within just a couple of days of the bidding’s close.
Secure financing to buy your HUD home. You’ll need to have financing lined up and your lender’s approval by your closing date. HUD does not offer loans for HUD homes.
Close the deal. Provide your lender with the documents it needs to finish processing your loan, and agree on a final settlement date. Congratulations on the purchase of your new HUD home!