What is HUD?

HUD is a housing institution in the US cabinet that stands for Housing and Urban Development. It is responsible for ensuring that housing and city development goes smoothly and has been around since 1965. However, its focus has shifted primarily to housing since the 1970s. Urban planning is now under the hands of individual cities.

One of the main responsibilities for a HUD loan is to serve as a lending facilitator. It is mainly used to provide loans to low to mid level income households so that they can purchase property or housing. HUD is not in the form of a lending institution per se. However it does approve loans and supports borrowers on a material basis.

Other than that, HUD also provides potential home owners with counseling services. It consists of a large network that addresses a vast range of key educational issues that focus on home ownership. Moreover, it also provides advice for foreclosures, defaults, rent and even credit issues. However, if you decide to utilize a HUD loan, you must do so through a licensed real estate agent.

What are HUD Homes?

HUD homes are generally 1 to 4 unit residential properties that are acquired by the HUD because of foreclosures on an FHA insured mortgage. These HUD homes thereby become the property of the HUD after foreclosures.

The FHA (Federal Housing Administration) is a part of the HUD that provides homeowners with federal mortgage insurance. A lender can file a claim for the price of the mortgage if the foreclosed home was bought with an FHA loan.

How much do HUD homes cost?

HUD homes are priced at specific and fair market prices according to their location after they are appraised by the HUD. The prices of the homes are altered in accordance to any potential repairs that the new homeowners must see to in order to improve the home in question.

HUD foreclosures are sold via a bidding process. Your agent can accept sealed bids during the offer period. All offers will be open the moment this period ends. The HUD will accept the highest bids for those that have the potential to get more net.

If you live in Arizona or plan to have a permanent place of residence there you can apply for a HUD home. Potential HUD home loan candidates can go to www.azhud.com and www.fhaarizona.net for more information or click here for a free booklet.

Thanks for reading my article:  HUD Homes and Loans

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