|FHA Homes refer to the single-family housing structures owned by HUD. These homes are available for sale on a priority basis to owner occupant purchasers and are marketed by the Management and Marketing Contractor operating in your community. One can buy a residential house either by paying a cash amount or using a convention or FHA-insured financing option. Since most people buy these homes using a loan insured by the Federal Housing Administration, they are often referred to as FHA homes for sale. A nationwide listing of such homes exists on HUD Home Store, a special website managed by the US Department of Housing and Urban Development (HUD).
FHA Homes for Sale
FHA doesn’t make loan, but insures loans made by an approved lender. The insurance coverage for which it receives monthly premiums from the borrowers is a guarantee that the lender will not lose their money. When a borrower defaults on a mortgage, FHA pays off the lender’s outstanding balance under a foreclosure action and takes possession of the home. Subsequently, a field service manager assigned to inspect, maintain and manage the property, and an asset manager is made responsible for its sale in the open market. One should contact either of these two HUD contractors for information regarding any aspect of a property.
Even investors are eligible to buy HUD Homes for Sale, but only after the exclusive listing period for owner occupants gets over. To bid on a property, one must submit an offer through a licensed realtor. Moreover, you are encouraged to inspect the home personally before submitting a bid. It is even better to get the services of a professional home inspector or use an inspection checklist to make a note of any repair work that needs to be done. If the extent of damage is such that you may require a significant sum of money to repair the same, you may consider an FHA 203(k) Rehabilitation Loan, which finances home buying as well as home improvement requirements.
HUD Home Store
HUD Home Store is the official website where HUD-owned properties are listed for every geographic location within the country. You can either click over a particular state name on the interactive map or choose a state from the list to view the listed properties. Search can be customized by giving additional information about County, City, Zip Code, Street, Price, Bedrooms and Bathrooms.
Moreover, there may be different lists for different types of home buyers – owner occupants, investors, government agency, non-profit organization and those eligible for discounts under Good Neighbor Next Door program. Though listings are available for almost all US states, a trend analysis shows that people are more interested in buying FHA homes in states like California, Florida, Georgia, North Carolina, Indiana, Maryland, Kentucky, Michigan and Ohio. San Diego, Chicago, and Los Angeles are among the cities that are widely searched for FHA Homes for Sale.