HUD & VA Homes FAQs

Each week dozens of HUD and VA properties are available by special bidding procedures. Most of these properties are available with special financing that lets you build the cost of repairs and renovation right in the mortgage. Some of them are available with very low down payments. There are frequently asked questions below...first about HUD homes, and then VA homes. Both are different processes. Bidding information and forms for these homes is highly specialized and unique. Work with a HUD and VA homes specialist...Frances Flynn Thorsen.

Special News for Teachers and Police Officers
You can own your own HUD home for up to 50% discount!. Call me for details.
I can help you with this process step by step. 

Who is eligible for VA home purchases?
You do not have to be a veteran to qualify for special financing in the purchase of a VA home. Call me for details. TheREALTYgram.com's Government Owned Homes is the most complete and up-to-date list of HUD and VA properties in the Lehigh Valley!

What is a "HUD" Home?
When someone with an FHA mortgage (an FHA mortgage is HUD-insured) can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then HUD sells it at market value as quickly as possible.

Who can buy a HUD home?
Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home.

Are HUD homes meant for people with low income?
HUD homes range in price, but most are affordable for low- and moderate-income buyers.

Is it true that I can get a HUD home for a dollar?
No. HUD sells homes at market value--that means the price is based on the price of similar homes in the area. HUD is offering a special arrangement with municipalities, however, to sell them homes for $1 under special circumstances.

If the HUD home needs repairs, will HUD make them?
No. HUD homes are sold "as is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD home needs fixing up--and not all of them do--it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. I have the details on this and I would be happy to discuss them with you in person.

How do I buy a HUD home?
Start right here with me. We will talk about the entire process from start to finish. We will inspect the house and then complete the necessary paperwork in my office. I will then submit the bid over the internet.

Normally, HUD homes are sold in an "Offer Period." At the end of the Offer Period, all offers are offered and, basically, the highest bid is accepted. If the home is not sold in the initial Offer Period, we can submit a bid for review any business day.

If my bid is accepted, then what happens?
I will help walk you through the paperwork process. You will be given a settlement date, within 45 days of the contract's formal acceptance. For an excellent booklet designed to help you understand the settlement process, look below and click on the link "Buying Your Home -- Settlement Costs and Helpful Information."

When you buy a HUD home, the real estate agent's commission is paid by HUD. 

How can I find out what HUD homes are for sale?
Right here. I have a regularly updated list of all HUD and VA homes that are available in the Lehigh Valley, including some Upper Bucks County listings and some properties in the Poconos area. If there are areas that interest you, please e-mail me and I will do my best to help you find someone who can help you in another area.

Note: There are many agencies that are eligible to sell HUD and VA homes, but very few with a proven track record in HUD and VA homes sales. It helps to work with someone who is intimately familiar with the process.

How can I get a loan to buy a HUD home?
HUD does not make loans directly. But they do have a number of mortgage insurance programs that can help you buy a home. You can click on the link below for "Mortgage Programs." Then contact a HUD approved lender, who will take you through the steps and actually make the loan. I will be happy to provide a list of HUD approved lenders in this area. 

Can I buy a HUD home as an investment?
Most HUD homes are initially offered on a priority basis to owner/occupant purchasers (people who are buying the home as a primary residence). Following the priority period, unsold properties become available to investors also. Most of the properties on today's list are available to investors and bids will be reviewed on a daily basis.

Is there anything else I should know about HUD homes?
I encourage every home buyer and home owner to be a wise consumer, so I have set up a variety of links below, including links to HUD's "Consumer Information." Houses built before 1978 may have lead based paint, which can cause harm to your family. See the link below for information about this topic. Be sure to read about this hazard and about what you can do to correct it.

Where can I find lists of VA homes available for sale?
VA homes are now listed in the MLS by Ocwen, The VA outsourced this program some time ago and no longer offers financing. Most VA properties in the Lehigh Valley carry no identifiers; prospective purchasers are aware only that the property is a bank owned property, not that it was insured by the VA.

Do I have to be a veteran to purchase a VA-owned property?
No. All VA properties are available for sale to both veterans and nonveterans.