What is a HUD Home?
A HUD home is a 1–4-unit residential property acquired by the U.S. Department of Housing and Urban Development (HUD) after a Federal Housing Administration (FHA)-insured mortgage goes into foreclosure. These homes are then offered for sale to recover the loss.
Understanding HUD’s Role
- HUD is not a lender; it is a seller.
- Homes are sold “as-is.”
- HUD contracts asset management and listing duties to approved companies and real estate brokers.
Getting Started as a HUD-Approved Agent
Step 1: Register with HUD
You must be a HUD-registered real estate broker (or work under one) to submit bids.
- Register here: https://www.hudhomestore.gov
- You’ll need:
- A valid Missouri real estate broker’s license.
- Your Tax ID (EIN or SSN).
- Office address and contact info.
Use the HUD Home store Portal
- This is the official site for listing all HUD properties:
www.hudhomestore.gov
- Search by state, city, zip, or case number.
HUD Homes in Missouri
Typical Characteristics:
- Located in urban and rural areas across Missouri.
- Priced below market value.
- May qualify for FHA 203(k) rehab loans if repairs are needed.
Selling HUD Homes: Process Overview
1. Check Listings
- Only properties on HUD’s Home store are available.
- Use search filters to refine by price, location, or buyer type.
2. Show the Property
- Lockboxes are placed on the home; only HUD-registered brokers have access.
- Properties are sold as-is; encourage a home inspection.
Bid Submission
- All bids are submitted electronically at hudhomestore.gov.
- Bidding periods:
- Exclusive listing period (typically 15 days): Reserved for owner-occupants, nonprofits, and government agencies.
- Extended listing period: Open to investors.
Bid Acceptance
- Bids are reviewed daily.
- Winning bids are typically chosen based on net return to HUD.
Contract & Closing
- If selected, you’ll receive a HUD Sales Contract Package.
- Contract must be submitted within 48 hours.
- Closings must be completed within 30–45 days.
Financing Options
- FHA 203(b): Standard FHA loan.
- FHA 203(k): Includes funds for renovations.
- Cash Offers: Common with investor purchases.
- Conventional Loans: May be used depending on buyer qualifications and condition of the home.
Tips
- Check for “Good Neighbor Next Door” homes: 50% off homes for teachers, firefighters, police, and EMTs in certain areas.
- Always verify zoning, school districts, and code compliance—especially in older or rural Missouri properties.
- Recommend buyers do a home inspection but remind them HUD will not make repairs.
- HUD homes can be a great entry point for first-time buyers.
