A HUD-owned home is a property that has gone through the entire foreclosure process and is now owned by HUD. Purchasing a HUD-owned home can many times help you save money on your next home or investment property.

HUD homes must be purchased through HUD approved brokers which Horizon Realty has been for many years. Horizon Realty can provide you an experienced Realtor who understands the entire HUD process.

HUD advertises their current available inventory on HUDhomestore.com and, of course, here on the Horizon Realty website. On HUDhomestore.com you may search by county and state and preview all the homes that are available. This also shows you whether the home is only available to owner occupants or whether an investor can purchase the home. In addition, the website will identify for you whether or not the home qualifies for a new FHA loan and any repairs that HUD thinks may be needed. Some of these homes even qualify for a $100 down payment program designed only for buyers on HUD owned properties.

To start the process please use Horizon Realty's mortgage calculator in order to obtain a rough estimate of what price range of home you can afford. Prior to actually looking at homes or placing a bid, it is very important to be pre-qualified for a FHA or other mortgage by a local lender. This process involves providing the lender with your exact income and current debt and monthly expenses. If you are paying cash for a HUD owned home you will be required to provide proof of funds sufficient to purchase the property. This proof can be a bank statement, letter from you bank, investment statement or any document showing readily available funds.

Your Horizon Realtor can assist you in your search for a HUD owned home and assist you in viewing the home and preparing your bid if you decide on a home. The bidding process is very unlike a normal arm's length real estate transaction. In the case of HUD homes there are no negotiations, no haggling, or offer and counter-offers. HUD accepts the highest bid that provides them with their acceptable net proceeds. If your bid is not acceptable and no other acceptable bids have been placed you may re-bid or raise your bid until you find a purchase price that HUD will accept.

It is very important to remember that HUD homes are always sold in "As Is" condition, which means that HUD will absolutely not make any repairs to the property and they do not warrant the condition in any way. HUD provides a Property Condition Report but that is only their inspector's opinion and is only based on that moment in time. The condition of the home may have changed. It is highly recommended to obtain an independent home inspection. If a home that you wish to buy needs repairs, you may wish to consider a FHA 203(k) loan which can provide additional funds to rehab the home.

Your Horizon Realtor can assist throughout this process and provide guidance from finding a HUD owned home, placing a bid, the inspection process, loan process and closing process.