Facts to Remember

HUD homes can be a great investment for potential home owners and real estate investors.  Often times, the properties can be purchased at a significantly reduced market value.  

As a potential HUD home buyer, remember the following:

• You must use the services of a HUD registered real estate broker

• You must be pre-approved for a mortgage or show evidence of adequate cash reserves to purchase the home

• Owner-occupied bidders receive the first priority to purchase HUD homes

• HUD offers three types of properties:  FHA insurable homes, FHA insurable homes with a repair escrow and homes hat are not insurable with an FHA loan.

• You do not have to finance a HUD home with an FHA loan

• HUD homes are sold "as-is"

• Before making a bid on a HUD home, you must provide your HUD registered real estate broker with the appropriate earnest money in the form of a cashiers check or money order.  

• If the purchase price is $50,000 or less, the amount of the earnest money required is $500.  If the purchase price is greater than $50,000, the amount is $1,000.

• Your earnest money check should be made payable to the escrow account of your HUD registered real estate broker.

You can obtain a list of Arizona HUD homes currently for sale by clicking here.  If you need a HUD registered real estate broker, click here.  As always, if you have any questions, please feel free to contact Sun National Real Estate at (602) 993-7509 with any HUD home related questions.