When borrowers with FHA loans default and their lenders foreclose, FHA pays the lenders and transfers ownership of the foreclosed homes back to HUD. HUD then offers them for sale to anyone who plans on residing in the property as their primary residence. You can secure cheap deals on HUD homes because they are sold at discounted prices. In many instances, you can purchase HUD foreclosed house for as little as $100.00 down payment.
Find HUD Foreclosed Homes
If you are searching for HUD homes in Peoria, AZ, you should start your search by looking at the HUD website or working with a local Realtor. The local newspaper or the Internet are other good places to find cheap deals on HUD foreclosed houses in the Peoria and surrounding areas. Keep checking because new properties come on the market all the time. HUD homes are good investments because you can get a bargain on the property and you get to purchase a property that you might not otherwise be able to afford. If you don’t have a large down payment, HUD foreclosed homes are easy to secure with a small down payment and you are getting a property with built in equity. Some homes needs repairs so be to figure that into your budget.
Things you Need to Know To Buy Cheap House
Always hire your own home inspector to do a home inspection for you even if there is a previous report on the property. This way you have an updated report and you know if the home needs immediate repairs or replacement of major systems such as the heating and air conditioning or the electrical, plumbing or roof. There are some guidelines that you should also be aware of such as the following:
- You need to get your own financing. HUD does not provide financing.
- You can obtain an FHA mortgage. You must purchase the mortgage insurance as well.
- The home must be used as your primary residence. If for some reason no owner occupants are bidding on the property, investors may bid.
- HUD does not negotiate on sales prices. They only accept full price offers.
- You must make your offer through a licensed Realtor. HUD wills notify your Realtor within a few days if your offer has been accepted.
- HUD will pay up to 3% of your closing costs if you request it in the offer, and they will pay your real estate broker’s commission if the broker requests it in the contract.
- Closings take place 30-60 day after acceptance.
Purchasing a cheap HUD Peoria home is a great investment. There are also good opportunities to purchase bank owned REO’s in the area and short sales. You should be able to find properties in most price ranges and neighborhoods that meet your criteria.