HUD Purchasers MUST obtain the services of a HUD registered real estate agency to view and purchase a HUD home.
- Closing Costs Offered
- Appraisal Completed
- Home Inspection Completed
- Termite Inspection Completed
- Special Discount Programs Available
Below are brief explanations of what you see on HUD listings when you review status and property condition reports.
As-Is Value: HUD will not guarantee condition of any property nor whether it meets local codes or zoning requirements. An FHA appraisal will determine fair market value of the property prior to the listing. Copies of that FHA appraisal will be made available to a buyer and their lender by request only after they’re under contract.
Investors: Investors cannot submit bids during the owner occupancy period which is specified on the HUD Home Website. Only if the property remains unsold after the bid deadline can an investor submit their bid. In this case, the “Eligible Bidders” field on the HUD Home Website will say “All Bidders”.
Everyone: Go to www.HUDHomeStore.com to check out the HUD homes and their property condition reports. All you need to do from the Home page is
- choose the state of AZ and enter the city you’re looking in. Then hit enter for a list of the homes.
- You may click the case number to view each listing.
- Click the “Addendums Tab” to view the “PCR” which is the Property Condition Report.
FHA 203b Regular FHA Financing- Listed as “IN”. The property does not have any mandatory repairs. In this case, FHA will insure the loan, hence the classification, “IN”. Contact your lender for specific costs and guidelines.
FHA 203b Repair Escrow Financing- Listed as “IE”. The property has less than $5000 in repairs to restore the property to minimum property standards. FHA will insure your loan provided the repairs are completed within 90 days of closing. Contact your lender for specific costs and guidelines.
FHA 203K Financing Eligible- Listed as “IK’ or “UI”– For properties needing more than $5,000 in repairs to restore the property to minimum property standards. This cost is built in to the buyer’s loan. Any purchaser that chooses to use this Rehab Loan must get qualified for this program through an FHA approved lender. Your lender must obtain an inspection report from an approved 203(k) consultant and a new FHA appraisal must be done. Contact your lender for specific costs and guidelines.
Bid Deadline: Bids will be reviewed the following business day after the bid deadline. Bid winners shall be posted no later than 4:00pm Eastern Standard Time. For the first 10 days the property is listed, only Owner Occupant Purchasers bids can be submitted. All owner occupant bids will be reviewed on the 11th day and considered as though they were received simultaneously. If no owner occupied bids are accepted on day 11, bidding is available to Owner Occupants on a daily basis until day 31 when bidding opens to All Bidders.
Property Condition: Be sure to check out the property condition report prior to submitting a bid. It is recommended you hire your own licensed home inspector to inspect the property as well.
Escrow Amount: The cost to do the repairs listed in the escrow information will be specified as the escrow amount.
The Good Neighbor Next Door Sales Program is an additional discount program designed to encourage revitalization of specified communities by providing law enforcement, firefighter, emergency medical technicians and teachers the opportunity to purchase homes in those specific areas. FAQs