Posted by: Sarah Reilly
HUD stands for Housing and Urban Development. It is a cabinet level government agency that was created in 1965 and is there to help American home owners. One of HUDs main functions is its role as a lending facilitator. It helps low and mid level income families acquire loans to buy homes. HUD offers counseling services, educational programs, grant help, and advice on foreclosures, defaults and renting. HUD also offers assistance in home ownership, home safety, repair and maintenance issues, insurance, and retirement housing. In many cases HUD can help first time homeowners who are low income and not fully capable financially or educational wise to purchase a home by themselves.
To purchase a HUD home the buyer must submit a bid to the department through an approved HUD real estate agent or broker. HUD homes are sold “as is” so the government will not pay to repair the property so it is up to the buyer to make sure that the home is properly inspected before they submit a bid to purchase the home. One benefit of a HUD home is that organization will pay most closing costs and broker commissions which in many cases can be a total in the thousands.