REAL TipS: BUYING

Go HUD

There are a lot of options available when it comes to buying a house, but when shopping for a home, many consumer tend to overlook one very viable option – a “HUD home.” A HUD home is a U.S. Department of Housing and Urban Development (HUD) residential foreclosure.

HUD is part of the Federal Housing Administration (FHA) and, if a foreclosed home was bought with a loan insured by the FHA, the lender can file a claim with the government for the balance due on the mortgage. FHA pays the lender's claim, and then transfers ownership of the property to HUD, which sells the home to willing buyers.

The net result is great homes in all areas of the country that are available for purchase – usually for less than you would imagine. Whether you're looking to buy your first house or are searching for a rental property, HUD homes can be a great option. The sales process for purchasing a HUD home is quite different than if you were buying a home from an individual owner, so be sure to talk to a Texas REALTOR® who specializes in HUD properties. And if you’re not sure, just ask.

Texas Association of Realtors®