Short answerBank owned and HUD homes are sold as is, usually through a listing agent. HUD homes are bid online through HUD Home Store by a registered broker, and owner occupant buyers get an exclusive bidding period of up to 30 days on homes eligible for FHA insured financing. Inspect carefully, since repairs are yours.
HUD homes
- Listed on HUD Home Store and bid through a HUD registered broker.
- Owner occupants get priority, up to 30 days on insured listings.
- Listings say whether a home is eligible for FHA financing as is, with repair escrow, or not insured.
- Some listings allow $100 down for eligible owner occupants with FHA financing.
Bank owned homes
- Sold by the bank's listing agent, often with the bank's own contract addendum.
- Sold as is; utilities may be off until you request them for inspection.
Watch out for
- Winterized plumbing and frozen pipe damage.
- Missing appliances, fixtures, or copper.
- Repairs a government loan appraiser will require.
See buying a house sold as is and renovation loans.
Frequently asked questions
Are HUD homes cheaper?
Sometimes, but they are sold as is. Price the repairs before you bid.
Can I inspect a HUD home?
Yes. You can inspect, and the contract allows a period to cancel based on inspection.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.