Purchase of a HUD Property

[Carl Moore]

Good Day All,

I am a beginner in REI and need some advice. I came across a HUD property (RE client portal) that is 3BD 2BA for around $90K. This home is in need of a renovation, so when I run my numbers, I can CF with an offer of $60K. (Appraise for $130K after renovation) I also know that my RE needs to put in the offer. Which need to be in by June 5, 2020

What I want to know is how firm on the list price is HUD? Do I need to get FHA loan to complete the purchase? Do I need to have an FHA per-loan approval, or can I find financing elsewhere later? How much for a down payment, do I need to put in the offer? And many more questions, I am looking for answers to. So, please provide more questions with answers, so I can learn. Thanks for your assistance in learning more about REI and HUD purchases.

C Moore

[Carl Moore]

Hi Greg H,

Thank you for responding. I have been reading your post from a few years back about HUD and found it very interesting. As you noted and I did not know until reading your posts, I am still looking at the Owner Occupy time frame. As we do not want to live in it, I am just going to have to keep an eye on it going forward.

Thank you for explaining how HUD works in the post "The Best Kept Secret For Bidding On HUD Homes” I found the information very helpful in understand how HUD works and the best ways to make a winning bid.