Buying Strategies
How to Buy a HUD Foreclosure Home
Complete guide to purchasing HUD foreclosure homes including the 100 down payment option, bidding process, inspection considerations, and closing.
What You Will Learn
HUD foreclosure homes can be an excellent opportunity for buyers willing to put in some work. If you are preparing to buy your first home, Patrick's First-Time Homebuyer Guide covers the complete journey and helps you build confidence before exploring specialized options like HUD properties. These are homes that were purchased with FHA loans and went into foreclosure, and HUD sells them to recover the insurance claim. The 100 down payment program makes them especially attractive for owner-occupants who plan to live in the home.
In this video, Patrick walks through the entire HUD home buying process from finding available properties on HUDHomestore.com to submitting bids and closing. He also covers the important differences between HUD homes and traditional sales including the inspection contingency rules and the exclusive owner-occupant bidding period. For a broader overview of the complete home buying journey, Patrick's First-Time Homebuyer Roadmap walks you through every stage from pre-approval to closing.
Key Takeaways
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100 Down Payment for Owner-Occupants
HUD offers a 100 down payment incentive for buyers using FHA financing who will live in the home as their primary residence. This can dramatically reduce your cash needed at closing.
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Owner-Occupant Priority Bidding Period
HUD gives owner-occupants the first 30 days to bid before investors can compete. This gives you a significant advantage if you plan to live in the home.
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Homes Are Sold As-Is with Limited Inspection Rights
HUD homes are sold as-is, but you can still do an inspection. The key difference is HUD will not make repairs, but you can walk away if the inspection reveals major issues (within the contingency period).
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Bidding Is Done Through an Approved Broker
You cannot bid directly on HUD homes. You must work with a licensed real estate agent who is registered with HUD to submit bids. Patrick is approved to help you through this process.
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Financing Options Beyond FHA
While FHA is the most common financing for HUD homes, you can also use conventional, VA, or cash. Patrick explains how each financing type affects your bidding strategy.
Continue Learning
Prefer to read? The full written companion to this video, How to Buy a HUD Foreclosure Home with a $100 Down Payment, goes deeper into the bidding process, qualifying, and a worked $300,000 example.
Considering purchasing a distressed property? Patrick covers what you should know about buying a home at auction and how it compares to HUD homes.
Ready to Explore HUD Homes in San Antonio?
Patrick can help you find HUD foreclosure properties and guide you through the bidding process from start to finish.
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