The Secrets to Buying a HUD Home

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For several years now, the market around Toledo has been leaning towards REO properties.  REO stands for real estate owned and simply means properties that are owned by a bank.  Sometimes, buyers are concerned about these types of transactions because they seem to be more fraught with danger.  This can be true, especially if you don't know or understand the process.  Here are three things you need to know about buying a HUD home.

First, you need to understand about HUD home condition.  These HUD owned properties are not always money pits.  In fact, many HUD houses are in near perfect condition.  Most of them are in at least great condition to near perfect condition.  Some may need rehab, but it's very rare to find a completely destroyed HUD home.  Often, HUD homes may need some cosmetic work done to them such as new carpet or appliances.

The second thing you need to know is that lenders will work with you on HUD homes.  In fact, there is a great one called the 203K.  For example, a home may need a roof or have a missing kitchen, so the lender will give you a 203K loan which allows you up to six months to work with them to get everything fixed.  All of the money that you need will be rolled into the loan and allotted as needed.

These loans have the same low interest rate and easy financing.  You can think of it as an FHA loan on steroids.

The third point to remember is that these HUD homes are houses with instant equity.  You're getting a huge discount on these homes, and sometimes it is thousands of dollars.  The homes are preapproved and pre-appraised.  You can't get much safer than that.

At the time that I taped this video, there were over 30 houses around the Toledo area that were being sold as HUD homes.  These houses ranged in price from $19,000-$155,000.  As you can see, that gives you plenty to choose from in a very reasonable price range.

If you'd like to look at HUD homes or other kinds of properties, or if you just have general real estate questions, drop me an e-mail or give me a call.  I'm always happy to help!