Buying A HUD Home

The above picture is of the HUD headquarters in Washington DC. It looks similar to UFOs and I think there's a subliminal message in the architecture. Being a government building and considering society's definition of UFOs and abductions, I say the message is positive and we should all roll with it. If you happen to be abducted by a HUD home, consider yourself lucky...

If you're in the market for a new home, which you probably are if you're on my site, you may have heard of (Housing and Urban Development) or HUD. There are many HUD homes for sale in Ohio and the Cleveland area. Are HUD homes only in Cleveland? No, there are HUD properties for sale in all the suburbs including Lakewood, Westlake, Rocky River, North Olmsted, Parma, Euclid, Cleveland Heights, Shaker Heights and the list goes on... Typically these homes will require some repair and it could be minimal to extensive. There are great deals on HUD homes in Cuyahoga and Lorain Counties and some incredible benefits to purchasing a HUD home.

• HUD is offering $2,500 cash back to all buyers at time of close.
• If you finance through FHA, you can put just $100 down on your home.
• Repairs needed on the home if any, can be financed directly through your FHA loan.

Those are fabulous perks and incentives to purchase a HUD home. Many buyers in this market ask about bank owned homes and foreclosures. HUD is probably one of the best options to consider when searching and it should be first on your list. You can buy a HUD home for considerably less than market value, put almost nothing down, make all repairs to the home with no out of pocket expense and have it remodeled to your standard and liking. After all of that, you will end up with a home that is cheaper than most on the market and your payment is affordable. FHA financing together with HUD's $2,500 giveback make an amazing combo.

HUD homes are easy to look at and make an offer on. You will want to move quickly as they tend to sell quickly. Once you find a HUD home that you want to purchase, only a REALTOR can make an offer for you electronically so it's very important to work with a real estate agent from the beginning. You will need to have your pre-approval letter handy and be able to give $1,000 for earnest money, (A good faith deposit typical in all real estate transactions, similar to a security deposit) Your agent will advise you and walk you through the steps.

With the number of HUD homes growing in the Cleveland Ohio area and nationwide, HUD wants them sold and they don't want to hold onto them for long. This is a great time to cash in on the opportunity to own your own home and invest in a below market property.

Example: If you were to buy a $60,000 HUD home in Cleveland with no money down and financing the $20,000 in repairs it may need, your mortgage payment would be around $800 a month give or take depending on taxes and insurance. Not to mention the extra $2,500 in your pocket just for buying it, the HUD home you just purchased and repaired is now valued at around $100,000 even in this market. Hold onto this home for at least 5 years and when the market turns, you've cashed in on a great equity opportunity and a great place to live. HUD homes come in all price ranges and areas.

There is no guarantee of future market and housing values of course or my name would be Miss Cleo and I'd be a trazillionaire. It's pretty obvious though that if you're purchasing correctly and choose wisely with location and area benefits, you'll make money on your investment long term. Let us know if you'd like a list of HUD homes in any part of Ohio or need a pre-approval. We'd be glad to help you find a perfect home, deal and investment.

Botton Line: Buying a house should first be considered a necessary part of life and the place you call home, but real estate has always been the best financial investment one can make even in today's market. Buying a HUD home and going through FHA to finance may be on the top of the food chain when it comes to deals, benefits and perks.