Investors can buy HUD Homes, but there are some restrictions on investor bidding. Here are some things investors should know about HUD Homes.
- HUD gives owner occupant buyers priority in the bidding process. When a property is listed for sale as a new listing, only owner occupant bids are accepted for the first 30 days.
- Investors can place bids on newly listed properties on Day 31. Investors can purchase only one HUD property in a 24-month period.
- Investors are not eligible for FHA financing.
- Earnest money requirements are higher for investors than owner occupants.
- Nonprofit investors may qualify for a “First Look” at HUD Homes if they intend to offer the property as affordable housing following their purchase.
If you are an investor and you are interested in HUD Homes, call me and we can discuss a strategy to move forward and add a HUD Home to your portfolio.
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