How can I buy a HUD Home?

HUD Homes are sold through a priority order bid process and you must use a HUD-registered real estate agent/broker to place a bid on your behalf.  HUD will even pay that real estate agent's commission, subject to certain restrictions.  HUD Homes are sold in an 'as-is' condition without warranty.  HUD strongly urges every potential buyer to get an independent home inspection BEFORE submitting an offer to buy a HUD Home to help you learn more about the property condition and the type of repairs you may have to make.
 
Start your HUD Home buying process by finding a participating real estate agent/broker.  Your real estate agent must submit your bid for you.  To locate HUD-registered Selling Brokers in your area, visit the HUD Homestore website at: http://www.HUDHomestore.com and click on the subheading “Broker Search” in the gray tool bar.  

For additional information on how to search for HUD Homes (including saving searches and email alerts) go to the HUD Homestore website and click "Help" on the gray bar in the top right corner of the page. On this page you will find short videos, guides and additional FAQs.
 
The timeframe for which bids are opened and reviewed depends on the property Listing Period.  If no acceptable bids are received, you can submit a bid until the home is sold.  Bids can be submitted any day of the week, including weekends and holidays.  Bids will be opened the next business day after the bid is “delivered” as defined by HUD.  If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours.  You will be given a settlement date, normally within 30-60 days, by which you need to arrange financing and close the sale.
 
In addition, HUD Homes are sold by private companies or Marketing and Management Contractors called Asset Managers (AM).  Access the HUD Homestore website to locate the AM for your area.  All bidding and closing information will be processed by the AM listed for the specific property.
 
You may also wish to contact a HUD-approved housing counseling agency in your area for pre-purchase counseling.  These agencies can provide unbiased counseling on you particular situation.

More information on buying a home is available on HUD’s website at: https://www.hud.gov/topics/buying_a_home

HQ Policy Determination


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02691