Who can buy a property on HUDHomestore.com?
HUD has identified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only registered bidders can make offers on properties. Home buyers must use a registered selling broker or selling agent to make an offer on their behalf.
Owner Occupant: Eligible owner occupants are individuals with a valid Social Security Number who have not purchased a HUD property with the past two (2) years. They can bid on homes in the Exclusive or Extended periods. Owner occupants rank above nonprofits and government agencies in the bid-selection process for Exclusive and Extended listings.
Investor: Eligible investors are individuals with a valid Social Security Number or Employer Identification Number. They can only bid on homes in the Extended phase and are ranked below other types of bidders in the bid-selection process.
Good Neighbor Next Door (GNND): GNND buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. During the Lottery phase, GNND buyers (1) get a 50% discount off the HUD appraised value, and (2) are given preference over Government Agencies and Nonprofits in the selection of a bid-winner. After the Lottery phase, GNND buyers are not eligible for the 50% discount.
For example, if HUD lists a home at $100,000 and the home is in the Lottery phase, a GNND buyer can buy it for $50,000 provided they occupy the home as their personal residence for the required 36-month occupancy period. If they qualify for any FHA-insured mortgage program, their down payment is only $100 and they may finance closing costs.
Nonprofit: Eligible nonprofit organizations, can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Nonprofits rank below Government Agencies in the bid-selection process for the Lottery phase, but above them for Exclusive and Extended listings. Nonprofits cannot bid for Dollar homes.
Government Agency: Approved government agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Government agencies can bid for Dollar homes.
What are the listing periods?
Properties can be in one of four listing periods, depending on the type of property, the Bid Open Date, and how long it has been on the market. These listing periods are:
Lottery: For an insured or uninsured single unit property in a revitalization area, plus all other uninsured properties. The initial listing period is seven (7) days.
(a) For insured properties not in a revitalization area. The initial listing period is thirty (30) days.
(b) Unsold insured or uninsured single unit properties in a revitalization area. This listing period is thirty (30) days. For unsold uninsured properties, the listing period is five (5) days.
Extended: For properties that are not sold in the Lottery or Exclusive periods, this listing period is one-hundred-and-eighty (180) days from the original list date.
Dollar: For unsold properties after the Extended period, this listing period is ten (10) days, after which the home returns to an Extended listing.
What are the HUD Special Programs?
Good Neighbor Next Door: Law enforcement officers, pre-kindergarten through 12th grade teachers, and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home during the Lottery phase. In return, the purchaser must commit to live in the property for 36 months as their sole residence.
Dollar Homes: HUD’s Dollar Homes initiative helps local governments to address specific community needs by offering low to moderate income families the opportunity to purchase qualified HUD-owned homes for $1 each.
Nonprofit: The Federal Housing Administration (FHA) offers community and faith based nonprofit organizations the opportunity to purchase HUD homes at discounts up to 30%. With this discount, local nonprofit organizations invest in their communities through property rehabilitation and resell to first-time home buyers and low to moderate income families.
How can I find out if I’m eligible for one of the special programs?
Contact your local HUD office. If you need contact information, call 1-800-CALL-FHA (800-225-5342).
Can I buy a home for investment purposes?
Yes. However, during the initial listing, owner-occupants get priority. If an owner-occupant does not bid on the home, then investors can bid on the home.
How can I find out if I’m eligible to buy a property?
For individual purchasers, you must have a valid Social Security number or Employer Identification Number to purchase a home. Owner-occupants are not eligible if they have purchased a HUD property in the past two (2) years.
As a buyer can I bid on homes myself?
No. HUD requires all bids be submitted through an authorized HUD broker. Click the Find Broker link on the top menu or in the Property Details screen to find a registered HUD broker in your area.
Can I buy a property with someone else?
Yes. You need to work with the selling broker to find out how a purchase by multiple buyers is handled.
How can I get more information about a property I want to buy?
Contact the local Listing Broker for the property or your Selling Broker if you are currently working with one.