There are many misconceptions out there on what a HUD home is. Most people mistake it for low income housing when in reality there are many high quality, higher priced HUD homes. In short, a HUD home is one that was foreclosed on that the owner had an FHA mortgage on.  In Michigan, FHA loan limits can reach almost $300,000.

Buying a HUD home is a fairly simple process. Here are the steps:

1. Search the inventory on hudhomestore.com to find homes that are available.
2. Contact a HUD approved agent to set up a showing. All Market Elite agents are HUD approved.
3. When you find a home to bid on have your agent fill out necessary forms and input bid on hudhomestore.com.
4. Make sure if you are doing an FHA loan that you know what kind of loan is eligible on that particular property. Some properties are uninsured (UI) which means you will have to have alternative financing or possibly a renovation or FHA 203k loan. Some properties are eligible for a FHA loan with a repair escrow which means the bank will hold a small amount back for minor repairs.
5. If you are an investor, make sure the loan is in an “extended” status as all other statuses are reserved for owner occupants, nonprofits, or municipalities.
6. Once a contract is signed, you have 10  days to do a home inspection and 45 days to close.

A HUD home can be a really good deal, but always be aware that you are buying “as is” because HUD doesn’t have detailed information on the property. Market Elite agents will be able to assist you in finding information on all HUD homes including those in Macomb County, Oakland County, Wayne County, Lapeer County, St Clair County, and Washtenaw County.