If you are looking for a house to buy, you will probably be shocked by how crazy the prices are. With the economic hardships the country is going through, it’s necessary to take advantage of every assistance opportunity available. One way to do this is through the HUD Home Store. This website is available thanks to the United States Department of Housing and Urban Development (HUD).

What is Available on the HUD Home Store?

First, it’s important to note that all of these houses on the website are HUD-owned REOs (real estate owned), meaning that the government agency actually owns the property. The website features a list of available homes for sale through HUD, including the following types of properties:

• Properties in Foreclosure
• HUD’s One Dollar Homes
• Good Neighbor Next Door (GNND) Properties

In addition to using the website to find homes for sale, people can place offers to buy these houses with the help of HUD-approved brokers. There’s even more that the HUD Home Store can offer; people can find a huge amount of information, facts, guidelines, and other useful resources on this website. This website can be a helpful resource for:

• Homebuyers (individuals)
• State and local governments
• Real estate agencies and brokers

Basically, before houses can be made available for the public to buy, they go through an evaluation process. Based on this evaluation, some of the properties are given to local governments and other approved organizations to take part in supportive programs. The properties that can’t be offered under any HUD program get posted on the website for homebuyers to purchase.

Properties in Foreclosure

There are plenty of listings available on the website. However, it primarily focuses on this kind of property. HUD foreclosed homes offer potential buyers a great deal of savings. They are available in 1- to 4-unit properties. These homes are financed by an FHA-insured mortgage. This is especially important to keep in mind if they go through foreclosure. After foreclosure, they become available for sale through HUD. 

An FHA mortgage is a form of loan insured by the HUD-affiliated Federal Housing Administration (FHA). What makes FHA mortgages unique is that they aim to protect lenders from severe financial loss in the event of borrower default. HUD will take possession of a home if the borrower fails to make their payments on an FHA mortgage. The next step is to sell the house and recover their financial losses.

Foreclosed homes are typically sold in their current condition, with no repairs or improvements made by the seller. It’s reasonable to assume the homes have some problems. Why? Probably because the previous owners likely couldn’t afford to keep up with necessary maintenance and repairs. This should be unsurprising considering that they had been having trouble making their mortgage payments before the foreclosure. As a result, it will be up to the new homeowner to pay for all of these maintenance and repair services.

Purchasing One of These Homes

Okay, so you’ve found a nice home that you want to purchase. It’s normal to be curious about what comes next. In general, you will need to find a real estate broker who is registered with HUD. You may be wondering why it is necessary to work with such a broker. Well, buying a home is a long process, and HUD simply does not have the staff to assist purchasers at every stage of this process. Therefore, HUD allows approved brokers to deal with certain services and advise potential homebuyers.

HUD’s One Dollar Homes

Some people might think this is a scam, but it’s not. In fact, HUD rules allow governments to acquire homes for one dollar. For these terms to apply, there are some conditions that the property must meet: 

• It has to be in foreclosure
• The property must be on the market for a minimum of six months 
• The property is no more than $25,000. 

When governments take possession of such properties, they often go through restoration and renovation. Then, the governments partner with local homeownership organizations to make these properties available to people who need housing assistance, or they take part in existing local programs.

Good Neighbor Next Door (GNND) Properties

The Good Neighbor Next Door (GNND) program is one of the HUD programs that aims to help people in specific professions afford housing. Through this program, eligible people can save up to 50% off the home’s listing price. However, applicants must meet all relevant eligibility criteria for their profession before participating in the program. Some professions where GNND could be useful are as follows:

• Law Enforcement Officers
• Firefighters
• Emergency Medical Technicians (EMTs)
• Teachers (from pre-k to12th-grade)

As a participant in this program, you will have to live in the house as your main home for at least three years after the sale closes. Choosing a neighborhood designated for revitalization is another condition of participation in the program. To find out more about the houses that are part of this program, go to the HUD Home Store. 

What to Expect When Purchasing a Home Through GNND?

You should know that the number of available houses under this program has a limit. It’s also noteworthy that, since the listings are updated weekly, you will only have 7 days to make a purchase. For this reason, it is preferable to make a decision as soon as possible. When you settle on a particular house, you can submit your interest in it on the website. However, if more than one offer is made on the same piece of real estate, a lottery system will be used to determine the new owner.

In addition to all of that, there is more to expect. Typically, you’ll need to sign a second mortgage and a note for the discount amount in addition to the purchase agreement for your new home. If you meet the other qualifications, including living in the home for three years, you won’t have to worry about interest rates or payments.

In Conclusion

The typical home buying process can be overwhelming for many people since there are many different options to consider. Thankfully, HUD is trying to help by offering useful tools, resources, and housing opportunities. The HUD Home Store is an excellent resource to use for help. On this website, you can find a wide range of affordable properties for sale. Before making a decision, you should review each option and make sure you fully understand how each one works. This way, you will be able to decide which one is best for your situation.