Almost everyone wants a piece of property that is only his or hers. It is a home you can paint, decorate, and settle into without worrying about rental agreement limitations. Not everyone, though, can afford to purchase a house. To help with this, the government started the HUD program. It helps lower income families afford homes while generally revitalizing neighborhoods, too.
What is a HUD Home?
A HUD home is one previously owned, but mortgage was not paid. This results in foreclosure. If the mortgage was through a government backed FHA loan, then it takes the house back. Like a bank sells a foreclosure, the government does as well for the same reason: to gain back any loses. Sometimes, the houses are repaired to move into right away, however, this is not guaranteed. The majority of HUD homes are not the hot locations, either. Whether you purchase a HUD home to flip or live in, though, it helps increase property value in these less desirable neighborhoods. Then, when it becomes the next place to be, you can sell for profit.
How to Buy a HUD Home?
Anyone can buy the home, though the government attempts to place primary residents in. This means these people are living in the home and not flipping or renting it out. Every home is given a certain amount of time before investors can make a purchase. You will then want to get an inspection since the quality of the house is not guaranteed. When purchased, you are essentially doing the sale as-is. You then apply for your mortgage, which can be through a bank, an FHA, FHA203k, or cash. During this process, you will want a realtor with HUD home experience on your side.
Why Buy a HUD Home?
Your realtor in Colorado may have many reasons for showing you a HUD property. In some areas, such Cherry Hills Village, it may be the only property in your budget. In up-and-coming areas, though, there are actually incentives to help make the purchase more affordable. These include
- The Good Neighbor Incentive: In order to revitalize the community, there are incentives for certain occupations. These are teachers, police officers, firefighters, and EMTs. The home is offered for 50% of its listing price.
- Dollars Homes: If the HUD house remains unsold for a period of six months, it becomes a dollar home. The community may purchase the property for one dollar and fix it up as needed. It can then be sold for an extremely low cost to help bring new people in.
- Non-Profit Discounts: A non-profit may purchase a HUD home for 30% off the listing price. This, again, helps the home become available to a lower income family after being fixed up.
If you are interested in purchasing a HUD home in Colorado, realtor David Person can help your search. He can be contacted via phone at 720.854.9501 or through email at Colorado Homes Connection.