The U.S. Department of Housing and Urban Development (HUD) helps many families achieve home-ownership. A HUD home is a residential property acquired by HUD after an FHA-insured mortgage is lost through foreclosure. See, when a property owner loses their home through foreclosure, HUD becomes the property owner. When that happens, HUD offers the home for sale in order to recover the financial loss from the foreclosure.
HUD Approved Housing Counseling Agencies (HCA)
Interested in buying a HUD home? You’ll need to get in contact with a HUD-sponsored housing counseling agency before you buy. Incidentally, HUD maintains a list of approved housing counseling agencies on its website. In Indiana, many of these agencies exist. Members of the network of approved Housing Counseling Agencies (HCA) and counselors help potential homeowners. See, they help potential buyers make responsible choices considering their own individual financial situations.
Who Can Purchase A HUD Home?
Actually, anyone qualifying for a loan within the terms of HUD requirements or with the needed cash can buy a home owned by HUD. Still, these homes are offered to owner-occupant purchasers first. This means that people who want to purchase a home as their primary residence get first dibs on HUD homes. See, this helps keep access to homes to help people become homeowners. Think about it. If investors were allowed to purchase within the same window, they could purchase most of the HUD real estate. Imagine if nothing remained for people looking to buy their family home. HUD home sales help families and communities.
HUD does not actually offer direct financing. Still, people in the market for a HUD home might be able to qualify for an FHA-insured mortgage. Still have questions? Let us help you figure out if a HUD home is right for you. Give us a call at 812-634-6969