Buy a HUD Home: FHA Homes for Sale

HUD offers a lot of FHA foreclosed homes with a reasonable price. A HUD Home refers to a property bought with an FHA mortgage which will then be foreclosed and the ownership will be transferred to the Department of Housing and Urban Development (HUD). The HUD now owns the property and opens it for sale to make up for the loss during the foreclosure.

A HUD Home can be bought if one has enough money or you qualify for a home loan to buy the property from the HUD. Although HUD doesn’t offer direct home loan, there are lots of lenders who offers home loan and FHA also offers home loan. It is first sold to people who will make it their primary residence. However, if the property is not bought by an occupant, it will then be sold to all buyers including the investors.

HUD Homes are sold through a bidding process which requires you to have your very own real estate agent who will do the bidding for you. If your bid wins, your real estate agent will be notified. If the offer period is done, your real estate can still submit your bud if the property is not yet sold.

Keep in mind that HUD Homes are sold in an “as-is” condition and the HUD is not responsible and won’t shoulder should a repair is needed in the home.

http://www.sdhudhomes.org/ provides best HUD Homes to Homeowners, Buyers and Investors.

Porama Srijinda, MBA.

REALTOR®, CIPS

Broker Associate at Keller Williams Realty.

Authorized HUD  Agent. Short Sale and Equator Experiences,

Ca. DRE. Lic# 01838443

Presentation: San Diego is the Best Place

San Diego is the Best Place

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Frequently Asked Questions When Buying a HUD Home

What is a HUD Home?

 A HUD Home happens to a property when a person with an FHA insured mortgage cannot settle the payments, the lender will then foreclose the home wherein the HUD will pay the lender of the owed amount which makes the HUD the property owner. After the HUD owns the property, HUD will now sell the house to bring back the huge loss of the foreclosed property. The HUD will sell it at market value as soon as possible. This is how a home becomes a HUD property.

Are HUD Homes only sold to people with low income?

HUD Homes vary in prices, depending on the area, although most HUD Homes are affordable.

I’ve heard that I can buy a HUD Home for a dollar, is it really possible?

HUD sells the property at market value which means that the amount will be of the same price of the same houses sold in the area.

How can I buy a HUD Home?

Before you can buy a HUD Home, you have to start by choosing a trusted real estate agent. Your real estate agent can then submit your bid. If your bid will be accepted, your real estate agent will then be notified.

Where can I find HUD Homes for sale?

You can ask your real estate agent in your area that shows HUD Homes for sale. They can help you find the right HUD Home for you.

Can I invest in HUD Homes?

Majority of HUD Homes are initially offered in a priority basis to home buyers or occupant purchasers that will make it their primary residence. After the priority period, those HUD Homes that were not sold will then be available to all the buyers and investors.

http://www.sdhudhomes.org/ provides best HUD Homes to Homeowners, Buyers and Investors.

Porama Srijinda, MBA.

REALTOR®, CIPS

Broker Associate at Keller Williams Realty.

Authorized HUD  Agent. Short Sale and Equator Experiences,

Ca. DRE. Lic# 01838443

Tips for Buying a Home

Owning a home is a good thing but buying one is not easy. It requires a lot of work and you’ll have to make one of the biggest decisions in your life, to make your dream house come true.

   Here are tips you should be reminded of before making that big step:

credits to http://resources.newhomesource.com

1.  Be sure to have yourself a buyer-broker who solely works for you. Your broker can communicate with the real estate agents of the seller.

2.     Don’t buy a house right away. Do a thorough canvassing of house prices before you invest in one. You might save yourself from spending too much for a house.

3.     Have a licensed home inspector to survey the house you want to buy before you agree to the terms of the seller.

If you are shopping for home mortgage:

4.     Do your homework by researching in the current interest rates of housing properties. Read the newspaper, check the web or call the lenders.

5.   You can save thousands of dollars by getting the shortest-term mortgage that you can afford so check for the interest rates.

6.  Don’t focus on one lending company, compare multiple lenders and get the Annual Percentage Rate that will summarize the points, broker fees and other credit charges for a whole year.

7.     Determine whether the interest rate is fixed or adjustable. Adjustable rate mortgage loans can raise your payments by hundreds of dollars in just a month. You don’t want to pay more than what you get.

8.     If your loan has an adjustable rate, ask how much it would change.

9.     Ask how much down payment is required as some lenders require as much as 20 percent of the properties purchase price. Lenders may also require that you have your own private mortgage insurance if you fail to pay or get behind the payment.

10.  Lastly, ask if you can pay the loan ahead of time and if there are any consequences for doing so.

Porama Srijinda, MBA.

REALTOR®, CIPS

Broker Associate at Keller Williams Realty.

Authorized HUD  Agent. Short Sale and Equator Experiences,

Ca. DRE. Lic# 01838443

5 Things You Should Know Before Buying HUD Homes

For sale HUD Homes: What You Should Know Buying a HUD home

The HUD homes for sale are FHA insured loans that were foreclosed and HUD has taken the ownership of the HUD Property. To make a profit out of it, HUD then assigns the HUD home to a Management and Marketing Contractor which will then clean and beautify the house and will have it appraised by and FHA appraiser.

Different rules apply when buying a home and a HUD home. This is for those who wants to buy a home and not for investors. These are the five things you should know before you make a bid in buying HUD homes.

1.   Anyone can buy a HUD home that’s for sale as long as you can get a mortgage or you have the money. There are no restrictions on who can buy HUD homes.

2.   You should take responsibility in making your own financing arrangements by having your loan pre-approved. A pre-qualification letter from your lending company or proof of cash is needed that is greater than the HUD homes you are buying. The HUD will not do your home so you can purchase HUD homes for sale.

3.   Be sure that you want the HUD home you are buying because a HUD home is sold in an as-is condition. What you see is what you get. Unlike in buying a regular house which you can do a meticulous inspection in almost everything, in buying HUD homes, you are not permitted to do a full inspection. A contract should be signed and accepted before you can test and inspect everything.

4.   There is an earnest money requirement which differs depending on the list price of the HUD home. However, if you don’t like the HUD home listing, the return of the earnest money is not automatic.

5.   You need to have a real estate agent in order to place your big on HUD homes for sale. You should choose a trusted and experienced real estate agent in buying HUD houses. Because if you pick the wrong real estate agent, you will be wasting a fortune.

Porama Srijinda, MBA.

REALTOR®, CIPS

Broker Associate at Keller Williams Realty.

Authorized HUD  Agent. Short Sale and Equator Experiences,

Ca. DRE. Lic# 01838443