This post will address a few basic questions that should help real estate investors understand more about investing in
Columbus area HUD Homes,. First of all, let’s define the term HUD Home. A HUD home is usually a 1 to 4 unit piece of residential property that was acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage.
HUD , also known as the U.S. Department of Housing and Urban Development was established in 1965 to develop programs to address the housing needs of U.S. citizens. One of HUD's primary missions is to create a decent living environment for all Americans by developing and improving the country's communities and enforcing the fair housing laws
HUD does this by administering a variety of programs that develop and support affordable housin. Specifically, HUD plays a key role in providing affordable loans for lower- and moderate-income families through its FHA mortgage insurance program and its HUD Homes program.
It’s important to note that HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing either through their own cash reserves or a mortgage lender. FHA-insured mortgage financing on certain properties is available through approved lenders, provided the buyer is credit worthy and has sufficient income to qualify.
Occasionally, a lender is forced to foreclose on a FHA-insured single-family home, town home, or condominium when the buyer can no longer make payments. The lender can file a claim to have HUD pay the balance due on the mortgage and assume ownership of the foreclosed property. These properties then become HUD Homes
In this event, HUD would like to return these properties to private ownership as quickly as possible and recover as much money as possible. Who can buy a
HUD Home,? Almost anyone, if you have the cash or you can qualify for a loan.
HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence) but if these efforts fall through the unsold properties are available to all buyers, including investors.
These properties are available for purchase by the public and are offered for sale at Internet listing sites maintained by management companies under contract to HUD.
Columbus HUD Homes are offered by NHMS and any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf.
HUD pays the real estate broker's commission, if included in the contract.
All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems. So if you are an investor, please make sure to get a detailed inspection after your offer is accepted. Also, HUD does not offer financing directly to consumers.
