What is a Hud?

A HUD home is when a government-insured loan (FHA) gets foreclosed and the Federal Housing and Unban Development pays the defaulted loan off, and then puts the home on the market. Many people are interested in buying HUD owned houses because of a possible low market value of the home.

What are the benefits of Buying a HUD Home?

Besides getting a good deal on the price of HUD properties, they come with several other great benefits:

• HUD paid closing costs up to 5% of the purchase amount
• HUD homes are already apprised by an FHA approved appraiser so you may be able to close faster if using an FHA loan
• You may be able to get up to 3% of your down payment paid for
• HUD loan programs available
• Low earnest money deposits ($500-$1000)
• Preference given to buyer purchasing as a primary residence over real estate investors

Sources: https://www.trulia.com/voices/Home_Buying/What_does_it_mean_when_it_s_a_HUD_owned_property-275969, https://thelendersnetwork.com/what-is-a-hud-home/