HUD is currently offering a $100 Down Payment initiative.  The $100 Down Payment is for owner-occupants purchasing a HUD home with FHA financing.  This incentive is also available to owner occupant purchasers who obtain a FHA home repair loan.  It's a great time to purchase a HUD home with FHA financing!

For additional information on this program, contact Pam Simpson.

What is a HUD home?
A HUD home is a 1-to-4 residential property acquired by HUD due to a foreclosure action on an FHA-insured mortgage.  HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Who can buy a HUD home?
Almost anyone!  If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD home.  HUD homes are offered to owner-occupant purchasers first.  Following the priority period for owner occupants (usually 10 days), unsold properties are available to all buyers, including investors.

How are HUD homes sold?
All properties available for purchase by the public are offered for sale at Internet listing sites maintained by management companies under contract to HUD.  Only HUD registered real estate brokers may submit an offer and contract to purchase on your behalf.  HUD pays the real estate commission, if any.  **Pam Simpson can show these homes to you, submit a bid for you and help you with the required paperwork.**

Should I get a home inspection?
Home inspections are encouraged.  All HUD homes are sold AS-IS, without warranty.  HUD will not make repairs nor pay to correct any problems.

What about financing?
HUD does not offer financing directly.  Shop around for a lender to find the best loan terms.  Contact Pam for help in finding a lender who is qualified to do FHA loans.

Can I purchase a HUD home for $1?
No - HUD dollar homes program allows only local governments to purchase qualified HUD homes for $1.

Can I rent or "rent to own" a HUD home?
Generally, HUD does not rent HUD homes.  There is no program to allow a person to "rent to own" a HUD home.

How does HUD determine the asking price?
HUD properties are appraised based on the current market conditions using the properties' AS-IS condition.  The amount that was owed on the loan at the time of foreclosure has no bearing on the asking price.

Are HUD homes low-income subsidy homes?
No.  HUD discontinued their subsidy program (Section 235) in 1989.  However, the USDA Rural Development does have a loan program for low-to-very low income homebuyers.  It is called a Direct Loan and payments may be subsidized by the federal government.  For more details, follow this link.

FOR A LIST OF HUD HOMES CURRENTLY AVAILABLE IN NORTH MISSISSIPPI, CLICK HERE.  NOTE:  This link is for HUD homes only - for HUD homes and Bank Foreclosures, visit the link in the left column.