I Heard That VA Loans Don’t Work Well When Buying HUD Homes Or Forclosures. Is
A HUD home is a 1-to-4 unit residential property acquired by the U.S. Department of Housing and Urban Development as a result of a foreclosure action on an FHA-insured mortgage. This means they must have a NAID registration number and be registered in the HUD database. I’ve bought five HUD Homes as real estate investments and the fifth one was just this week. The M&M Contractors act on HUD’s behalf, but HUD retains the title to the home until it is sold.
Each lender has its own process for potential buyers to preview and then submit offers on its foreclosure homes. These properties offer the same low prices as owner-occupant offerings, and as a result HUD homes are some of the most sought after investment properties on the real estate market today.
The federal government, HUD, becomes the owner and offers the property for sale to recover the loss on …