Looking For a Deal
Seeking a deal or a fixer upper or just a great opportunity to be in Boulder, you may want to consider HUD. When you buy a HUD home, you can find a deal, expect a little fixing up and score a great opportunity. HUD will even help owner occupied buyers with closing costs.
How It Works
To buy a HUD home you need to be prepared and follow some simple steps. The good news for owner occupied buyers – the first few weeks a HUD home is on the market, only owner occupied buyers can make offers. On the other hand, those first few weeks HUD will collect offers and then select from the best offer on the table.
- Step 1: view a HUD home, very similar to seeing a regular property. Be prepared for the utilities to be off, appliances to be missing and in the summer, a dead lawn.
- Step 2: write an offer. When you buy a HUD home, a special contract is used instead of the regular Colorado contract to buy and sell real estate. There is both an electronic and paper version that must be filled out. HUD cares about net proceeds when reviewing offers.
- Step 3: upon acceptance you have 36 to 48 hours get the earnest money in. This must be in the form a cashier’s check, another difference to know when you buy a HUD home.
- Step 4: Inspection, Appraisal, Loan Approval – the big items are all the same in a HUD contract. However, HUD generally will not doing any work for Inspection. Frequently, for a full price transaction, there will be an appraisal available from HUD.
Where Do HUD Homes Come From?
HUD homes come from FHA foreclosures. HUD – The Department of Housing And Urban Development gets the house following a fully completed foreclosure. HUD immediately runs a CMA with a special name called a BPO (Bank Price Opinion). The HUD home is then appraised by FHA. HUD will also occasionally make improvements or set aside funds in escrow to be paid to buyers following the closing.
Special Financing For You When You Buy A HUD Home
The 203K loan is a great option for buyers. The loan allows for your lender to escrow funds at closing. Now your fixer upper HUD opportunity to can be improved immediately after closing with the expenses wrapped into the loan.
I Want To Buy A HUD Home Investment
Investors can purchase a HUD home as well. You need only wait for the owner occupied period to expire. Best to be ready to act the first day a HUD property is available to investors.