Find and Buy Inexpensive Homes at the HUD Home Store

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THE HUD HOME STORE at is the listing site for HUD (U.S. Department of Housing and Urban Development) real estate owned (REO) single-family properties.

AN REO PROPERTY IS REAL ESTATE OWNED BY A LENDER, usually a bank (or in this case, HUD), after an unsuccessful sale at a foreclosure auction. Most of these properties sell for less than the total amount owed to the bank. The minimum bid in foreclosure auctions typically equals the outstanding loan amount, accrued interest and fees incurred by the foreclosure sale.

REO REAL ESTATE CAN OFTEN BE BOUGHT AT A FURTHER DISCOUNT below the foreclosure price and market value. In fact, the HUD Home Store lists HUD “Dollar Homes” at, offering local governments the opportunity to buy HUD-owned homes for $1 each! 

HUD HOME STORE GIVES the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale. In addition, registered real estate brokers and other organizations can place bids on behalf of their clients to purchase a HUD property. 

HUD HOME STORE ALSO INCLUDES informative user-friendly features providing advice and guidance on the home buying process. Answers to Frequently Asked Questions are available for:

  • the General Public

  • Real Estate Brokers and Agents

  • Members of the Mortgage Industry

  • Nonprofit Organizations and Government Entities

WHAT IS A HUD HOME? A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of 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.

THE FOLLOWING INFORMATION GIVES AN INTRODUCTION to the process through which HUD homes can be purchased. 

This information is posted by HUD at

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 initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

SHOULD I GET A HOME INSPECTION? HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.

If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in applying for an FHA 203(k) Rehabilitation Loan. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. 

Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. 

WHAT ABOUT FINANCING? HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan you may buy a HUD Home. While HUD does not provide direct financing, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

DOES FHA OFFER ANY SPECIAL DISCOUNT SALES PROGRAMS? FHA REO properties located in designated Revitalization Areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments as part of HUD’s Good Neighbor Initiatives. You can view maps of REO properties and special programs such as Revitalization Areas with HUD’s Single Family Home Locator.

WHERE CAN I LEARN ABOUT AVAILABLE HUD PROPERTIES? Any single family property acquired by HUD FHA will display a sign identifying who is managing the property before it is listed for sale. During this time the property is appraised, title issues are resolved, if necessary, and a determination is made about the property’s eligibility for HUD’s discount sales programs. 

PROPERTY LISTINGS ARE POSTED ON HUD HOME STORE. For more information, contact the Management and Marketing Contractor that manages the FHA housing portfolio in your community or call the FHA Office of Single Family Asset Mnagement at (202) 708-1672.

Information on  Management and Marketing Contractors is given on the Internet at

MORE INFORMATION ABOUT HUD FHA and their programs can be found at the FHA Resource Center at


U.S. Dept. of Housing and Urban Development (HUD)

451 7th Street S.W.,

Washington, DC 20410,

Telephone: (202) 708-1112


This article was published in the June, 2014 issue of Money Watch Bulletin from International Wealth Success Inc.


About Ty Hicks

Tyler G. Hicks is the author and publisher of many popular books, courses and articles on small business entrepreneurship and real estate investment. His books have been featured in Business Week, the Washington Post, and the Los Angeles Times.

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