Governmental Entities do not need to be pre-approved prior to purchasing HUD Real Estate Owned (REO) Properties at a discount, provided they are not organized as 501(c)(3) nonprofits.
Governmental Entities are included in the definition of Owner-Occupant Buyers and may purchase Properties during the same periods as Owner-Occupant Buyers.
For Direct Sales, Governmental Entities may purchase HUD REO Properties at the following discounts on the list price:
- 30 percent off the list price for Properties that are located within a Revitalization Area and uninsured;
- 10 percent off the list price for Properties located outside of a Revitalization Area that are insured or uninsured;
- 10 percent off the list price for insured Properties located within a Revitalization Area; and
- 15 percent off the list price for FHA-insured or uninsured Properties located outside of a Revitalization Area, and insurable Properties located inside a Revitalization Area when:
- the Asset Manager (AM) has accepted five or more bids from the Governmental Entity or HUD-approved Nonprofit within a 15-business day period; and
- the sales are closed in a single transaction.
Governmental Entities must submit bids for HUD REO Properties electronically through HUDHomestore. In order to submit bids through HUDHomestore, Governmental Entities must:
- have applied for and been issued a Name and Address Identification Number (NAID); and
- be registered on HUDHomestore or successor site.
To obtain a NAID number and for detailed NAID registration information and instructions please visit: https://www.HUDHomestore.com and click on NAID Application Portal on the gray bar at the top of the page, or you can go directly to the page at: https://www.hudhomestore.com/Listing/NaidApplication.aspx
For guides and short videos on Registering as a Bidder and Submitting a Bid go to: https://www.hudhomestore.com/ListingSiteFAQ.htm
If you need further clarification, you may send a request for additional information by email to firstname.lastname@example.org or call the FHA Resource Center at
For policy information see Handbook 4000.1 IV.B.2.d.iv and IV.B.2.g. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh