How Do You Buy a HUD Home?


Quick Answer

Businesses, investors and private citizens can purchase a HUD home with cash on hand or a qualified loan. Owner-occupied homes are given first priority, and then anyone can buy a property, according to the U.S. Department of Housing and Urban Development.

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Full Answer

Owner-occupiers get the first chance to purchase a HUD home. This refers to people who buy the home to live in it. After the owner-occupied waiting period expires, investors, brokers, real estate agents, nonprofit organizations and government entities can attempt to purchase homes, notes the U.S. Department of Housing and Urban Development.

Search the HUD Home Store one of three ways. Click on a state to browse properties in that area, and then sort listings by price, number of bedrooms, number of bathrooms and open bid date. Choose one of three HUD programs including Good Neighbor Next Door, Nonprofits and $1 Homes. Each program has its own terms and conditions. Search directly for homes by state, county, city, address and price. You can also narrow the search by status and buyer type, according to the HUD Home Store website.

After you find a listing for a HUD home, find a broker or submit an offer. First-time buyers need a broker, and registered HUD bidders can place an offer. A HUD home store listing appears similar to a private-sector real estate listing with pictures, square footage, year built and list price. HUD homes are sold as-is, and inspections are up to potential buyers, notes the U.S. Department of Housing and Urban Development.

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