A HUD Home is a foreclosure property that had an FHA mortgage loan. They are Government homes for sale.
All HUD Homes can be purchased with only $100 down and you can borrow up to $5,000 for repairs, also HUD contribute up to 3% of the sales price toward buyers closing cost.
Any additional questions please feel free to contact me.
A HUD home is a 1-to-4 unit residential property acquired by Housing and Urban Development as a result of a foreclosure action on an FHA-insured mortgage. HUD (i.e.the government) becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
Fred Yancy, Broker
Somewhat over simplified but here is the basic explanation. FHA mortgages are administered by the US dept of Housing and urban Development. HUD. When a home owner with an FHA loan gets foreclosed it is then owned by HUD.
HUD homes are just one option available for purchase. Actually in recent months I think HUD homes have been overpriced but they sell because of buyer competition. I would look at all ;purchase options and not just HUD homes.