What does it mean when a home is a HUD Home?

A HUD home is a home that was purchased with an FHA-insured mortgage and the homeowner has defaulted on the loan and entered foreclosure. The homes are offered at auction and can be bid on by individuals planning to make it their primary residence. Individuals are given priority over real estate investors and homes are often sold for slightly under market value.

What is the meaning of HUD?

HUD’s main goal is to provide affordable housing and incentives, especially for low-income families and individuals.

Who qualifies to buy a HUD Home?

Anyone who can secure financing for a HUD home is eligible to bid on one. Preference is given to owner-occupant buyers, meaning those who are planning to live in the home as their primary residence. However, real estate investors can purchase a HUD home at the end of the exclusive listing priority period of 30 days.

What Is A HUD Home? | Quicken Loans