The US Department of Housing and Urban Development offers numerous programs and assistance options that may help you gain access to affordable housing.
One of the tools you could make use of is the HUD Home Store which presents you with available housing options.
The main issue is that a lot of Americans aren’t even aware this opportunity is out there!
This article will try to help you understand what the HUD Home Store is and how you can benefit from using it.
The HUD Home Store program, how it works, and how to make use of it
Even though the website features mainly foreclosed property listings, other options are also available.
You can dig through the listings on the website and even search for Good Neighbor Next Door housing options and options from the Dollar Home program.
Essentially, the website is an online listing platform for real estate-owned properties managed by the HUD.
Aside from being useful to the general public, brokers and state/local governments also use the HUD Home Store.
In fact, the site allows approved brokers to bid on your behalf if there’s a property you’re interested in.
Even if you’re not looking to buy, you can look through the HUD’s extensive resource of information for consumers planning to become homeowners.
How does it work?
Naturally, before any listing makes it onto the page, it needs to be evaluated and approved.
This way, the HUD can determine if they can sell the property to local governments and non-profit organizations.
Properties like this are usually in a revitalization area.
A HUD revitalization area is a place where the government is trying to make improvements to help the community.
If there is no special program applicable to the listing, access to it is determined by buyer priority.
By doing this, the HUD gives an advantage to buyers looking to get their first home.
Any properties leftover from this timeframe are then made available to anyone who wants them.
Despite the fact that there are many other options on the website, foreclosed properties are seemingly the most popular with buyers.
The properties listed under this category range from 1 to 4-unit residential options.
However, the foreclosure needs to be on an FHA-insured mortgage to be listed on the Home Store.
This is because FHA mortgages provide protection against losses as well as the fact that the FHA falls under the HUD.
Buying a foreclosed property from the HUD
As it stands, any HUD-approved real estate broker can attempt to buy one of the properties listed on the Web Store.
The main reason behind this practice is brokers’ experience and knowledge in the local real estate market.
Additionally, the HUD isn’t staffed enough to be able to showcase these properties to the buyers.
Due to this, they fail to provide assistance in other aspects of purchasing a home, which is exactly why a skilled broker is so important.
What to expect
Considering each of these properties was listed as a result of foreclosure, they’re sold in the condition the previous owner left them in.
The condition you find the property in can depend on a number of factors. This includes its location, age, and how well it was maintained.
This also implies that the HUD has no responsibility to repair any of the damage on the property.
Due to this being the case, the new owner of the property will have to deal with all the necessary repairs and fixes.
At times, the repairs are minor and aren’t as costly, although some properties do require extensive work to get them back in shape.
Good Neighbor Next Door
One of the options that you can find on the HUD Home Store is the GNND program.
The homes you’ll find in this program are often found in areas that need additional investment.
Through this program, qualifying individuals can receive support if their profession matches the requirements.
By becoming beneficiaries of this program, eligible individuals can receive a 50% discount on the price of qualifying homes.
This hefty discount can make a world of difference when it comes to handling housing – it’s half off!
Of course, this does come with an additional set of requirements.
To receive this support, the applicant must live on the property for a specific period of time.
This timeframe is at least 3 years.
Not only that but the home needs to be in a revitalization area.
You can find the eligible properties by using the HUD Home Store tool.
However, the website has a limited amount of properties, and they change on a weekly basis.
If multiple people make an offer on a single property, the final buyer will be selected at random.
Unlike the previous option which is available to individuals, the $1 home option is available to local governments.
The HUD allows them to purchase qualifying homes for the amount of a single dollar.
It is helpful to list these properties at this price because it is affordable for local governments to purchase.
This low price acts as an incentive to these governments to invest in these properties to improve them.
After they are improved, they can be offered at an affordable rate to those in need within the community.
However, this is only applicable if the market value of the said property is equal to or less than $25k.
Additionally, the property has to be on the market for at least half a year.
After they’ve obtained the property, the local government does repairs on it to give applicants access to affordable housing.
This housing is provided through local nonprofits as well as existing programs.
There are lots of opportunities to review when it comes time to purchase a property.
One place to look through opportunities for this is the HUD Home Store.
Aside from having foreclosure listings, it includes GNND program homes and even Dollar Home program homes.
Knowing what’s out there is key to finding the home that’s right for your wants and needs.