You will need to qualify for a loan (subject to
certain restrictions of course) you may use cash to buy a HUD Home. Priority period: HUD homes are initially
offered to people who are buying the home to use as their primary residence (owner occupant). Following the priority period for owner
occupants, properties that did not sell during the priority period become available to all home buyers, including
Obtaining a loan to buy a HUD home is just like most other home loans. You call the lender and give them your information so they can determine the best loan for you. Once you have been pre-qualified with the lender, they will issue a document known as an LSR (Loan Status Report). This document is submitted with you bid to HUD.
Note: I highly recommend you choose a lender that is very experienced with the HUD home process.
Should I Get the Home Inspected?
Short and Simple, YES. HUD does not warrant the condition of the home and HUD will not pay to correct defects or make repairs. HUD strongly urges buyers to hire a professional inspector. Once your bid is accepted, you will have 15 days to have all inspections done.
HUD's As-Is Policy: HUD makes not representations or warranties concerning the condition of the property and will make no repairs to the property.
Do I Need a Real Estate Agent?
Yes, only a licensed real estate agent who is registered with HUD can submit your bid. The real estate agents broker must be registered as well.
There are many types of real estate agents. Do your homework, you are making one of the largest purchases you will probably ever make.