What are HUD homes?

FHA acquires homes when a borrower defaults (fails to pay) on a FHA-insured mortgage and the lender files a claim to FHA for the balance due on the mortgage. After FHA pays the claim, the lender transfers title of the property to HUD/FHA. These properties are then sold to the public through a bidding process. Any real estate broker who is properly registered with FHA may submit purchase contracts. FHA requires that a broker place the bid because:

1. They have expertise in the local residential real estate market
2. FHA does not have sufficient staff either to show properties to prospective buyers or to assist in other aspects of home buying normally handled by real estate brokers or sales professionals

Potential buyers must submit offers on HUD Homes during an open "offer period". At the end of the offer period, all offers are opened and HUD may accept the bid providing the highest acceptable net return.

Following the initial "offer period," homes that aren't sold are offered on an "extended" basis which means offers may be submitted any business day. If a bid on one of these homes is acceptable, the broker will usually be notified within 48 hours of HUD's acceptance of the offer.

Homes are initially offered to owner-occupant purchasers (people who agree to live in the home). If there are no owner-occupants, unsold properties are available to all buyers, including investors.

All properties available for purchase by the public are offered for sale over the Internet by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase on behalf of a buyer. HUD will pay the real estate broker's commission, if it is included in the contract.

HUD Homes Listings

To search the listings of HUD homes in your area, please click on the state below. If you think you want to buy a HUD home, you need to contact a real estate sales professional in your area who is authorized to sell HUD homes.

HomeSales.gov

HomeSales.gov has homes for sale from FHA and other federal agencies in one place. The HomeSales.gov web site provides current information about single family homes for sale by the U.S. Federal Government. These previously owned homes are for sale by public auction or other method depending on the property. Anyone can buy a home for sale by the U.S. Government, but you must work with a real estate sales professional or servicing representative to submit an offer or bid.

Currently the U.S. Departments of Housing and Urban Development (HUD/FHA), Agriculture (USDA/Rural Development), and Veterans Affairs (VA) have homes listed on this site. For more information, you can visit the website at: www.homeSales.gov/homesales/mainAction.do

Common Questions about HUD Homes

A HUD home is a one-to-four unit residential property turned over to HUD due to foreclosure because the homeowner failed to make payments on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss.

Who can buy a HUD home?
Almost anyone! If you have the cash or can qualify for a loan, subject to certain restrictions, you can buy a HUD home. HUD first offers the homes to owner-occupant purchasers (people who buy a home to live in it). After the priority period for owner-occupants, all buyers, including investors, may purchase HUD homes.

How are HUD homes sold?
You can find all available properties on the Internet by clicking the state in the list above. Homes are maintained by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase for you. HUD pays the real estate broker's commission if it is included in the contract.

Are there any special programs?
Properties in designated areas are available at a reduced sales price to police officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments. Read more about these Neighbor Next Door initiatives below!

Should I get a home inspection?
We encourage you to get an inspection after your offer is accepted. All HUD homes are sold "as-is" without warranty. HUD will not make any repairs or pay to correct any problems.

What about financing?
Although HUD doesn't offer loans directly, some of our homes qualify for FHA-insured loans. Shop around for a lender to find the best loan terms. Find out how an FHA loan can help you.

Good Neighbor Next Door Sales Program (GNND)

Our Good Neighbor Next Door (GNND) program puts you next door to other good neighbors in communities throughout the country that are undergoing revitalization. If you are a teacher, law enforcement officer, or firefighter/emergency medical technician, we want you to live in these communities and contribute to their revitalization. You can do so while becoming a homeowner through HUD's Good Neighbor Next Door Program. We offer substantial incentives with discounts of 50% off the list price for your home. In return you must live in the property for 36 months as your sole residence.