Question: What is a "HUD Home"?
Answer: When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then HUD sells it at market value as quickly as possible.

Question: Who can buy a HUD home?
Answer: Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home.

Question: Are HUD Homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low- and moderate-income Americans.

Question: Is it true I can get a HUD Home for a dollar?
Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.

Question: If the HUD Home needs repairs, will HUD make them?
Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your CUDRES real estate agent will have details.

We encourage you to get the home professionally inspected after your bid has been acknowledged on the web site.

Qestion: How do I buy a HUD home?
Answer: CUDRES has access to HUD-certified real estate agents. Once we assign you an agent, your real estate agent must submit your bid for you, either by telephone or internet.

Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid any business day.

Question: If my bid is accepted, then what happens?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 30-60 days, where the transaction will occur. We have an excellent booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information."

When you buy a HUD Home, the selling agent's commissions are usually paid by HUD. HUD will pay a sales commission of up to 5%.  And you will receive 20% of that, in states where allowable by law, with our Home Buyer Rebate!

Question: How can I find out what HUD Homes are for sale?
Answer: Right here! We have updated lists of HUD Homes for sale every day. If you see one that interests you, complete the form on the left side of the page, and one of our agents in your area will show you these HUD homes. They can help you from there.

Question: How can I get a loan to buy a HUD Home?
Answer: HUD doesn't make loans directly. But they do have a number of mortgage insurance programs that could help you buy a home. You can read about those programs here. Then contact a HUD approved lender, who will take you through the steps and actually make the loan.

Question: Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

Question: Is there anything else I should know about HUD Homes?
Answer: We encourage every homebuyer and homeowner to be a wise consumer, so be sure to read HUD's Consumer Information. Houses built before 1977 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.

Attention: Nonprofits and Government Agencies!
HUD has a special sales program under which approved nonprofit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs. Contact the local HUD office for details.