How to Buy an HUD Home in Pennsylvania
HUD homes in Pennsylvania are also referred to as real-estate owned (REO) properties because they are owned by the Department of Housing and Urban Development. Residents should learn how to buy HUD homes in Pennsylvania because they are usually listed below market value. A resident who decides to buy a home from HUD can sometimes purchase a bigger house or a home in a more desirable area for a more affordable listing price than on the traditional market. Potential homebuyers should review where to find an HUD home in their area so they can browse the local inventory and find suitable homes at reasonable prices. There are many advantages of buying an HUD home even though the homes are sold to buyers as-is with no financial compensation for repairs to be made or defects to be corrected. The process of buying a HUD home must be initiated by a real estate agent or broker, but the general public can shop for homes listed by HUD. To find out more about what HUD homes are, how to buy HUD homes in Pennsylvania and why potential home buyers should consider these homes for purchase, read through the following information.
What are HUD homes in Pennsylvania?
PA HUD homes are homes that were financed using FHA-insured loans but the homeowners defaulted on the loans and the properties were foreclosed. The HUD homes are listed for sale when the department takes ownership of them because HUD wants to sell them to the public to recoup some of the losses experienced through the defaulted loans. HUD homes in Pennsylvania are one- to four-unit residential properties available for purchase by any resident who can provide the cash or obtain acceptable financing.
Potential homebuyers should ask real estate agents or brokers how to buy HUD homes in Pennsylvania because the general public cannot make bids on these homes without assistance from a licensed housing professional. Residents attempting to buy a home from HUD in PA should note that all homes are sold as-is in the current condition and the department does not offer additional funding for repairs. However, the advantage of buying an HUD home can be the lower listing price compared to the prices usually seen in the traditional housing market of a similar home. HUD home buyers can also attempt to apply for an FHA 203(k) Rehabilitation Loan to assist with funding for home repairs.
Advantages of Buying an HUD Home in Pennsylvania
When HUD homes in Pennsylvania are first listed by the department on their HUD Home Store site, they are only available to owner-occupant buyers for a set period of time. After that time has passed, investors wondering where to find an HUD home can then gain access to the newer listings in the system and can have real estate professionals make bids on the properties for them. For owner-occupant purchasers, one of the advantages of buying an HUD home is the exclusivity of browsing through the available homes without the competition of investors for an initial period of time. Potential homebuyers who want to buy a home from HUD in PA have a better chance of winning the bid on a home they desire with only the competition of other owner-occupant buyers.
Another one of the advantages of buying an HUD home in Pennsylvania is the special programs available to eligible home purchasers. When buying a home through HUD, qualified candidates may utilize the Good Neighbor Next Door Program to obtain a significant percentage off of the home's listing price. An applicant must be currently serving in a specific profession, purchasing a HUD home in a revitalization area and planning to occupy the home for a minimum set period of months to qualify for the program benefits.
To learn more about HUD homes in Pennsylvania and the special purchasing programs available to eligible homebuyers, read through our informative online guide.
Where to Find an HUD Home in Pennsylvania
Potential homebuyers may wonder where to find an HUD home with the right number of bedrooms and bathrooms or located in the area where they want to live. HUD homes in Pennsylvania can be found on the HUD Home Store website and can be sorted by location or other home characteristics. Residents looking to buy a home from HUD in PA can also drive around their desired areas and look for homes with “For Sale by HUD” signs in the front yard. To purchase these HUD homes, potential buyers should note the addresses of the homes and consult with real estate agents or brokers for housing counseling about making an offer and to discover more details about the listing.
The HUD Home Store website is one of the advantages of buying an HUD home in PA since it makes it easy for potential homebuyers to find HUD homes in the area that matches their desired criteria. HUD homes in Pennsylvania that are eligible for purchase through special HUD-sponsored programs can also be found and sorted through the website. HUD homebuyers who are eligible for these programs can use the website's filter to look at listings they can purchase through the respective programs.
To find detailed information on how to buy HUD homes in Pennsylvania and how to use the HUD Home Store website, download our free and comprehensive guide.