HUD homes are houses put on the market by the federal housing and urban development. The placement follows a foreclosure on government-insured loan where the HUD pays off the defaulted loan and repossess the property. Many home buyers in Atlanta prefer HUD homes due to the low market value. However, the HUD home purchase process isn’t an easy task. It is complicated when compared to buying a home from an individual. Here are some of the tips we would like HUD home buyers in Atlanta to have;
The Cost of HUD Home
Like any other home on the market, HUD homes are appraised and marked for sale on what is supposed to be a fair market price. Ask for a comparable price in the locality as you would do when purchasing any other real estate property. Real estate agents in Atlanta will provide sufficient data on the market of HUD homes in the area. While you can buy a HUD house on $100 down, you must oblige to standard FHA lending guidelines, more so if you are a new home buyer.
Who Makes the Repairs?
Don’t be fooled; HUD will not carry out any repairs on the home. HUD sell the home on an as-it-is basis, and any repairs and maintenance is the responsibility of the home buyer. To be on the safe side, order a home inspection through your real estate agent before closing a deal on HUD home. If the home requires repairs, the 203(B) repair financing plan will work for you. This plan covers repair costs of up to $5000.
HUD Home Financing
Probably you think that HUD will finance the home buying. On the contrary, they do not. Before making an offer to buy HUD home, put your finances in order. Be approved for a mortgage before placing a bid on the house. Also, ensure to close the deal once the offer is accepted to avoid losing the earnest money deposit you submitted with the offer.
HUD Home Buying Procedure
The procedure for buying the HUD homes in Atlanta is different from the typical home purchase process. Here, you need the services of a registered home buying agent to assist with the HUD foreclosures bidding process. If your bid is the highest offer, HUD will give you at most two months to complete the home purchase.
Get a Professional Home Inspection
Yes, get a professional home inspection done for the HUD home. Real estate agents in Atlanta offer top-rated professionalism in regards to the home inspection. The exercise will establish any environmental hazards in the home. The risks include asbestos content and buried storage tanks. Besides, taking precaution for health reasons, an inspection will also help in determining a reasonable bidding price, especially where significant repairs are required.
Point to Note,
You can find HUD homes in Atlanta on the state’s website. HUD has their approved real estate brokers who can help you through the foreclosures purchase process. Remember that you can buy HUD foreclosures as a primary residence, but you may also buy them for investment.