How to Buy a HUD Home in Phoenix
HUD homes can be
a great investment for potential home owners and real estate investors.
Often times, the properties can be purchased at a significantly reduced
market value.
As a potential
HUD home buyer, remember the following:
-
You must use
the services of a HUD registered real estate broker
-
You must be
pre-approved for a mortgage or show evidence of adequate cash reserves
to purchase the home
-
Owner-occupied
bidders receive the first priority to purchase HUD homes
-
HUD offers
three types of properties: FHA insurable homes, FHA insurable homes
with a repair escrow and homes hat are not insurable with an FHA loan.
-
You do not
have to finance a HUD home with an FHA loan
-
HUD homes are
sold "as-is"
-
Before making
a bid on a HUD home, you must provide your HUD registered real estate
broker with the appropriate earnest money in the form of a cashiers
check or money order.
-
If the
purchase price is $50,000 or less, the amount of the earnest money
required is $500. If the purchase price is greater than $50,000, the
amount is $1,000.
-
Your earnest
money check should be made payable to the escrow account of your HUD
registered real estate broker.
You can obtain a
list of Phoenix HUD homes currently for sale by
clicking here.
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