What are HUD Homes?

First time buyers usually decide to fund their home loans through the Federal Housing Association (FHA) via FHA insured loans.  The FHA can also implement foreclosures if a property owner fails to keep up on his/her mortgage payments. The agency then takes legal possession of the home and resells it through a HUD registered real estate agent.

HUD puts those up for sale what were “owner occupied”. You must sign a document if you wish to purchase a HUD Home. 

The document testifies that you have agreed to remain in the home for at least 12 months before you decide to sell it. If you have no intention of living in the intended property for that long and sign the document anyway, you might be charged with fraud.

In other words, you might end up spending some jail time or be fined a hefty sum and convicted. Needless to say, lying about the whole thing isn’t what you can afford at this point. So make sure that you are ready to stay for at least 12 months before you sign up for a HUD FHA loan. If you don’t plan on living in the home for that long don’t buy it! A felony charge won’t look good when it comes time to sell the house.

Sellable homes that are a result of HUD foreclosures are not candidates for a quick flip. However, they can be a godsend for investors who need a place to stay. Other than that they can also serve as long term investments.

One of the most obvious benefits of HUD homes in Arizona is that they allow you to qualify for FHA financing. FHA agencies provide special interests rates in loans that you can use to purchase or rehab dilapidated properties.

However, assuming that you might get a great deal on property just because it is funded by the government is a mistake. Therefore it is best that you do your research when it comes to applying for HUD homes or FHA home loans. Besides that, make sure that you inspect your target property, research property value rates in the area and have the home looked at by a seasoned professional before you even think of handing over your hard earned funds.

For further information on financing or buying a HUD home (free HUD Home Buying Guide) please feel free to call The Mark Taylor Team 602-361-0707.  And as always thanks for reading my article: Purchasing Owner Occupied HUD Homes

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Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Arizona HUD Homes | Ariona VA Loans | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes