Real Estate Across Atlanta
Real Estate Across Atlanta

Who can buy a HUD home?

Anyone who can qualify for a mortgage or who can pay cash may buy a HUD home. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.

How can I buy a HUD home?

Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and considered to be received simultaneously, and, basically, the highest acceptable net bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. The results from the review of all accepted bids are posted on our website. It is the responsibility of the real estate agent to check our website for accepted bid information and ensure that all the required forms are properly filled out and sent to us within two business days of acceptance.

How can I find a HUD home?

HUD homes are listed on our website, on www.HUDPemco.com and in the local MLS.  In addition, HUD's official website for listings is www.HUDHomeStore.com.

What us Owner Occupant Period?

When a HUD property is first listed for sale to the general public, bids can be submitted be all potential purchasers; however, it is available to Owner Occupant Purchasers "only" during the initial priority period as specified below. All bids placed by Owner Occupants that are submitting during this priority period are considered to have been received as though they were received simutaneously. If there are no acceptable owner-occupant bids on the last day of the priorty period, then the bidding becomes available to all purchasers on a daily basis, with no priorty given to owner/occupant bids.

When can an investor submit a bid?

When a HUD property is first listed for sale to the general public, bids can be submitted by all potential purchasers (Including investors); however, it is available to Owner Occupant Purchasers "only" during the inital priority period as specified above. All bids placed by Owner Occupants that are submitted during this priority period are considered to have been received as though they were received simultaneously. If there are no acceptable owner-occupant bids on the last day of the priority period, then bidding becomes available to all purchasers on a daily basis, with no priority given to owner/occupant bids.

How do I get access to show the property?

A HUD approved real estate broker must show the property to you. We can assist you with any HUD home you would like to see.  Call 678-383-1711.

Can I submit more than one bid for different properties?

If an Owner Occupant submits multiple bids for different properties PEMCO will select and award the bid that has the highest acceptable Net to HUD for that property.

What is FHA financing?

(1) 203(b) Regular FHA Loan - Listed as "IN"

If the property does not have any mandatory repairs FHA will insure the Loan hence the classification of "IN"

(2) 203(b)-Repair Escrow- Listed as "IE"

When a property has less than $5000 in repairs to bring it up to Minimum Property Standards, FHA will insure the loan provided the repairs are completed by the Buyer or the Buyer's agent within 90 days from the date of closing.

It is a cost to the Buyer that the Buyer can finance and add the amount to the mortgage.

The Lender moniters and keeps the funds in an escrow account for disbursement on completion of repairs to the Lender's satisfaction.

(3) 203(k)- Rehab Loan-Listed as "203K"

When the property has more than $5000 in Minimum Property Standards repairs to be done.

The Lender must obtain an Inspection report from an approved 203(k) consultant and a new appraisal.

How is the repair escrow determined?

The FHA appraiser lists the estimated cost of repairs needed to bring the property up to minimum FHA standards. This amount is then multiplied by 110% and this amount is listed as the repair escrow amount. Example: if repairs total 1,000.00 x 110% = 1,100.00. The Repair Escrow amount will be lsited as $1,100.00.

What is Officer/Teacher Next Door?

One of HUD's Special Sales Program under the Good Neighbor Initiatives is the Officer Next Door/Teacher Next Door (OND/TND) program. The OND/TND Programs offers HUD-owned, single family homes that are located in HUD designated Revitalization Areas will be made available to Law Enforcement Officers and Teachers at a 50 percent discount of the last listed price. When a law enforcement officer or teacher chooses to use an FHA-insured mortgage the down payment is $100. When a government agency of nonprofit organization is the purchaser, HUD expects that the full discount will be passed on to the law enforcement officer or teacher. Officer Next Door/Teacher Next Door program participants are required to own and use their property as their sole residence for at least three (3) years. Participants agree to execute a second mortgage and note which will be for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify. During the entire term (3 years), the buyer may NOT own ANY residential real property other than the OND/TND home. Failure to comply with this (or any OND/TND) requirement may result in the remaining balance of the second mortgage becoming immediately due and payable. The officer or teacher must submit a contract bid 100 percent of the listing price. Winning bidder will be chosen by lottery. The 50 percent discount will be applied at closing. Teachers must be employed in the school district that they purchase a home in under the Teacher Next Door Program.

What is Firefighter-Emergency Medical Technician Next Door?

Effective November 1, 2005, HUD announced the eligibility of firefighters and emergency medical technicians to purchase HDU acquired homes located in HUD designated revitalization areas at a discount, in accordance with HUD's regulations for the Officer/Teacher NExt Door (OND/TND) Sales Program. Inclusion in the OND/TND program is designed to help more firefighters and emergency responders become homeowners, and will further the goals of the OND/TND Sales Program to accelerate the revitalization of Americas's cities by promoting the integration of dedicated role models and mentors into the community.

Does HUD have special programs for Non-Profits and Local Governement Agencies?

Another one of HUD's Special Sales Program under the Good Neighbor Initiatives is the Direct Sales to Non-Profit Organizations and Government Agencies. This special sales program under which approved non-profit organizations and governement agencies may purchase properties at discounted prices for use in local housing or homeless programs.

For more information on purchasing a HUD Home call the HUD Outlet Team at 678-383-1711. 

We are a HUD local listing broker for Pemco, LTD,  www.HUDPemco.com.

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