Buyer FAQs

Where do I get more information on FHA? Right here at our Buyer FAQs information guide.

Visit website containing almost 1,300 questions and answers about FHA programs, underwriting and processing.  FHA Resource Center – 1-800-CALLFHA (1-800-225-5342)et more information on FHA?

Where can I find an FHA lender?

You can find a FHA lender in your area on HUD’s website at

What are bidder types?

There are five buyer types that are eligible to purchase HUD Homes:  Owner Occupants, Investors, Good Neighbor Next Door (GNND), Eligible Nonprofit organizations, and Approved Government Entities.

  • Owner Occupant buyers are individuals with a valid Social Security Number (SSN) who have not purchased a HUD property within the past two years as an owner occupant.  An owner occupant must live in the property as their primary residence for one year and may not purchase another HUD Home for two years.  Owner Occupants can bid on homes in the exclusive or extended periods.
  • Investor buyers are individuals with a valid SSN or Employer Identification Number (EIN) who purchase the property as an investment.  Investors can bid on homes in the extended listing phase.  There is no restriction on how many properties an investor may purchase.
  • GNND buyers are qualifying law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians.  HUD offers a discount of 50% from the list price of a home located in revitalization areas and in return GNND participants must commit to live in the property for at least 36 months as their sole residence.  HUD also requires that buyers sign a second mortgage and note for the discount amount.  The GNND buyer or spouse may not have owned a property within the last 12 months, or have participated in the GNND program before.  A GNND buyer must bid 100% of the listing price.  GNND buyers can use any type of financing or cash deal.  FHA financing:  a GNND buyer must qualify for the entire purchase price prior to discount.  The buyer can finance into the mortgage all reasonable and customary closing costs, including prepaids and real estate commissions.  HUD will NOT pay any closing costs or real estate commissions. GNND participants must submit bids through a real estate broker licensed to do business in the state where the property is located.  If using FHA financing to purchase the home, GNND buyers can purchase the home for only $100 down. FHA financing must be used for the $100 down payment incentive to apply.
  • Approved Nonprofit Organizations can bid on homes in lottery, exclusive, and extended phases provided the properties are located in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Nonprofits rank below Government Entities in the bid selection process for the lottery, but above them for exclusive and extended listings. Nonprofits cannot bid for dollar homes.
  • Approved Government Entities can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Only Government entities can bid on Dollar homes.

Why do I need a Home Inspection?

All HUD Homes are sold “AS-IS”.  HUD makes no representations or warranties concerning the condition of the property, including but not limited to mechanical systems, dry basement, foundation, structural, or compliance with codes, zoning or building requirements and will make no repairs to the property. Regardless of whether the property is being financed with an FHA insured mortgage, HUD does not guarantee or warrant that the property is free of visible or hidden defects, termite damage, lead based paint, or any other condition that may render the property uninhabitable or otherwise un-useable. The purchaser is responsible for taking such actions as they believe necessary to satisfy themselves that the property is in a condition acceptable to them, of laws, regulations and ordinances affecting the property and agrees to accept the property in the condition at the time of contract acceptance. Purchasers are strongly encouraged to have a home inspection performed to identify any possible defects.

Do owner-occupants have a priority in bidding?

Yes, there are owner-occupant priority bidding periods set aside throughout the bid process. Exclusive Listing Period – IN and IE

  • There is a 30 day exclusive listing period for owner occupants for IN (insured) and IE (insured with escrow) properties. All bids received in the first 10 days are treated as having been received simultaneously and if no winning bid is received by the 10th day, the bids are reviewed daily for the remainder of the exclusive listing period (up to 20 days) for owner occupant purchasers only.

Exclusive Listing Period – UI

  • There is 5 day exclusive listing period for owner occupants for UI (uninsured) properties. All bids received in the first 5 days are treated as having been received simultaneously and if no winning bid is received by the 5th day, the property is made available to all bidders.

I am an investor. When can I bid on a HUD property?

During the exclusive listing periods, bids may be submitted by Owner Occupants.  At the conclusion of these exclusive listing priority periods, all general public bids will be accepted.

Do I need a realtor to place a bid for me?

Yes, please contact a registered HUD broker or agent to place a bid on a property and to access the home listed for sale.  To lookup a broker/agent in your area, visit the HUDHomestore website.

How can I view a HUD Home?

All buyers MUST be accompanied by a broker or agent when viewing any HUD Home listed for sale. Brokers and agents must also accompany any individual performing services such as home inspections, appraisals, or certifications.

Where can I find a HUD home?

HUD homes are listed on the HUDHomestore website and in the local Multiple Listing Service (MLS).

When are properties listed for sale on

Properties are listed daily (Sunday to Saturday).

Who can buy a HUD Home?

Anyone with a valid Tax ID (*SSN or Employer Federal Tax ID) issued in the United States can buy a HUD home. Potential buyers must qualify for a mortgage or pay cash to buy a HUD home. Buyers must have a pre-qualification letter from a certified lender, or proof of funds in the amount of, or greater than the gross purchase price of the property.

What is a HUD Home?

The U.S. Department of Housing and Urban Development (HUD) is the agency that oversees federal housing agencies and programs including the Federal Housing Administration (FHA) which insures home loans. A HUD Home is a one-to-four unit single-family residence, condominium or townhome that has been conveyed to HUD by the lender as a result of foreclosure when the borrower defaults on the FHA-insured loan. HUD in turn sells the property at “AS IS” market value based on a recent appraisal as quickly as possible through an Asset Manager (AM) Contractor such as PEMCO, LTD. HUD Homes vary in price, location, and condition. Some are move-in ready condition and others are not.

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