Premiere Plus Realty Co.
Jennifer Johansen, Premiere Plus Realty Co.Phone: (239) 450-0822
Email: [email protected]

What Homebuyers Should Know About HUD Homes

by Jennifer Johansen 11/03/2024


If you're searching for a new home, you may have come across references to Housing and Urban Development (HUD) homes. HUD offers government mortgage insurance programs and loans. But what is a HUD home, exactly?

Here are the basics to help you with your home search:

HUD Homes: The Basics

HUD homes are foreclosed properties reclaimed by the government. When a buyer uses a Federal Housing Administration (FHA) loan to buy a residential property, they risk losing the property entirely if they cannot make their mortgage payments. The government then re-sells the homes at a low price to make up for the money spent paying off the rest of the mortgage.

Every HUD house gets an appraisal to determine the best price, but they are still often below market value. This makes them attractive options for first-time homebuyers, flippers or anybody looking for a good deal.

Incentives to Buy HUD Homes

The HUD agency offers many incentives to homebuyers to encourage the sale of these foreclosed properties. These incentives include grants, vouchers and special buyer programs to assist with mortgage payments, down payments and more. Buyers with careers in public service or who work with nonprofit organizations are also eligible for some of these special incentives.

Buying a HUD Home

It's important to note that the process for buying a HUD home differs from other homes. You won't find listings for these properties in the usual places like MLS or search portal sites. Instead, you can search and browse HUD listings on their website.

HUD homes are different from other properties in that you have to buy them at auction. You need a licensed real estate agent to represent you, to bid on and purchase a property.

Is a HUD property right for you? There are many factors to consider, but knowing the basics will help you make your decision. Consult a real estate professional for advice on the best way to proceed with your home search.

About the Author
Author

Jennifer Johansen

Jennifer is passionate about the Real Estate business, and has been involved in related family businesses in construction, architectural millwork, and finance for 20 years. She and her husband relocated to Naples, from New York, 10 years ago, although her family has owned property on Marco Island since the 1980's. She has a Bachelor's Degree in Psychology and a Dual Master's Degree in Counseling and Education. She has acquired many necessary skills that are useful in Real Estate from being in the field of Counseling for many years. She holds the belief that building rapport is vital to helping her clients have a positive experience, while achieving their goals. She is very thorough and detail oriented, and has formed many close relationships with professionals in related fields, such as law, title insurance, home inspectors and other contractors. She aims to offer concierge- level service to her clients at every price point. When time permits, she enjoys spending time with family and friends. Having grown up on the South Shore of Long Island, and enjoying her summers on Fire Island, she loves any activity related to salt water, boating and the beach. Additional hobbies include gardening, art, and studying nutrition, wellness and naturopathy. She is knowledgeable about Naples and Marco Island Real Estate, in estate areas, golf/gated communities, and waterfront properties. She is a member of The Naples Board of Realtors and Marco Island Area Association of Realtors.