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FAQ - FREQUENTLY ASKED QUESTIONS
 

Homebuyers' FAQs:
Please click on a question from the list below:

 
Brokers' FAQs:
Please click on a question from the list below:
 
Buyers' FAQs:

I hear that HUD sells homes. How can I buy one?
Read our section: How to Buy a HUD Home. Then look at the listings of HUD homes available at hudhomestore.com. If you find a home that interests you, you will need to contact a HUD-approved real estate broker (most brokers are HUD-approved), who can submit a bid for you. Successful bids are posted right on the page for your state.

Who Can Buy a HUD Home?
Almost anyone. If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

How Are HUD Homes Sold?
All properties available for purchase by the public are offered for sale at the HUD listing website: hudhomestore.com. Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.
HUD Homes are offered for sale at fair market value, based on a recent appraisal. Generally, HUD Homes are sold in what is known as either Exclusive or Extended Offer Period, during which a potential buyer's offer must be made. At the end of the Offer Period, all offers are opened and the bid providing the highest acceptable net return to HUD may then be accepted. Following the initial “Exclusive Offer Period" homes remaining unsold are offered on an "extended" basis which means offers may be submitted on any business day. If a bid on one of these homes is acceptable, the broker will usually be notified within 48 hours of HUD's acceptance of the offer.

Do HUD Homes have a warranty?
HUD Homes are sold "As Is" without warranty. No repairs will be performed by HUD after closing. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property.

Where Can I Learn About Available HUD homes?
Visit hudhomestore.com to view available property listings, to learn about HUD programs, to locate a HUD broker and to find out how to purchase a HUD home.

I am interested in purchasing a HUD home – how do I find a HUD broker to assist me?
Please visit hudhomestore.com – you will be able to enter location information and find the names of HUD approved real estate brokers in your area.

I am interested in a particular Hud home, when will it be listed?
The HUD Asset Manager Contractor is unable to provide an exact listing date. You should monitor the hudhomestore.com listing website regularly as new listings will appear daily.

What is HUD’s Earnest Money Policy?
Please visit the Procedures webpage of Ofori's website under the Earnest Money Deposit paragraph.

Why Ask For An FHA Loan?
A) Easier to Qualify: Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements, so it is easier for you to qualify.
B) Less than Perfect Credit: Even if you have had credit problems, such as bankruptcy, it is easier for you to qualify for an FHA loan than a conventional loan.
C) Low Down payment: FHA loans have a low 3% down payment, and that money can come from a family member, employer or charitable organization. Other loans do not allow this.
D) FHA Loans Cost Less: Many times, FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.

Should I Get a Home Inspection?
HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection.

What About Financing?
HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. While HUD does not provide direct financing for the purchase of a HUD Home, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

What are the listing codes for a HUD Home and what do they mean?
Please visit the Procedures webpage of Ofori's website under the Listing Codes paragraph.

What is the down payment on an FHA-financed loan for Owner Occupants?
3% Minimum Down payment for FHA financed properties. The maximum mortgage amount is 97% of the appraised value or of the sales price whichever is lower.

Can I sell my home to HUD?
HUD does not buy homes. The homes that HUD sells come into HUD's possession as a result of defaults on FHA (HUD) insured mortgages.
Read HUD's web section on Selling Your Home. It offers basic information that is good to know when selling your home.

Does FHA Offer Any Special Discount Sales Programs?
HUD homes located in designated Revitalization Areas are available at a reduced sales price to Law Enforcement Officers, Teachers, Firefighters, Emergency Medical Technicians, Non-Profit Organizations and Local Governments. Read more about these Good Neighbor Initiatives.
 
Brokers' FAQs:

There are many changes to the way HUD sells homes under M&M3.  Where can I find additional information about the changes?
Please visit the FAQ section of hudhomestore.com.  HUD has compiled very helpful data under their FAQ section for brokers, purchasers and general inquiries.  Please review and watch the PowerPoint presentation outlining the significant changes in the new program.

I am a real estate broker, and I would like to sell HUD homes. What do I need to do?
HUD has a web section just for real estate brokers. There, you can find out about the requirements for certification, how to get listings, and more.

How can I see listings of HUD homes for sale?
You can see lists of HUD homes for sale right at hudhomestore.com. You can even get directions to the properties that interest you, see their locations on a map, and find out what schools are in the area.

How do I become a HUD-approved broker?
You must be a HUD Approved Broker and have a valid HUD Name Address Identifier (NAID) previously supplied by HUD before you can make an offer on a HUD Home. Visit hudhomestore.com and view the NAID section as well as related topics for the broker under the FAQ section.

What is the selling broker commission?
Please visit the Procedures webpage of Ofori's website under the Broker Commission section.

What is the process to become a Neighborhood Listing Broker for Ofori & Associates?
Please visit our website under Subcontracting, click on the link for real estate agents.
You will be able to review the information on the Neighborhood Listing Broker criteria and complete an online application. Should you require technical assistance during the application process, we have provided links to connect to online support for your convenience.

I am an Ofori Neighborhood Listing Broker (NLB) and I have misplaced my user name, who can assist me?
The username you picked was included in the notification email sent to you upon successful registration. That email was sent from do-not-reply-tend@tenmanagement.com. Please check your inbox, junk or any other mail folder you may saved the email to. It contains also useful information on how to reset a forgotten password. If you are unable to locate that email, please send an email from the email address you used to register to support-tend@tenmanagement.com.

I need assistance with my NAID.
The HUDHOMESTORE provides the following information for NAID assistance:  For questions about NAID applications, company name or address changes, or registering to sell HUD Homes: Call 1-800-CALL-FHA (800-225-5342)

I am a Broker, I want to show this property but do not have a key, what do I do?
Please contact the listing broker designated in the  property listing at hudhomestore.com under property details/agent tab and he/she will assist you with accessing the property.

What are the down payment requirements?
Please visit the Procedures webpage of Ofori's website under the Downpayment paragraph.

How do I arrange for a Home Inspection?
Once the sales contract is signed by HUD, you will be provided with instructions on how to contact the appropriate Field Service Manager contractor (FSM) to coordinate your inspection.  We will also notify the FSM via work order.

How do I find out the status of my bid?
Log into your bidding account on the HUDHomeStore.com and click on the Bidder Functions tab (the top right of your screen). You will be able to review the bids that you placed. Accepted bids are displayed for 14 days after acceptance.

Where can I find HUD closing agent information by State?
Please visit oforireo.com.  Click on the Broker tab and then scroll down to Closing Agents.

When are bids submitted?
Please visit the Procedures webpage of Ofori's website under the Listing and Bidding paragraph.

What is the Exclusive Listing Period (Owner Occupant Priority)?
Please visit the Procedures webpage of Ofori's website under the Listing and Bidding paragraph.

What is the Extended Listing Period?
Please visit the Procedures webpage of Ofori's website under the Listing and Bidding paragraph.

What is the Earnest Money forfeiture and/or Return Policy?
Please visit the Procedures webpage of Ofori's website under the Earnest Money Forfeiture and/or Return paragraph.

Will HUD pay for closing costs?
Please visit the Procedures webpage of Ofori's website under the Closing Costs paragraph.

How long to we have to close after acceptance of a sales contract?
Please visit the Procedures webpage of Ofori's website under the Closing Time Frame paragraph.

How do I request an extension to close a sales contract?
Please visit the Procedures webpage of Ofori's website under the Closing Extension Policy paragraph.

What are the sales contract extension fees?
Please visit the Procedures webpage of Ofori's website under the Closing Extension Policy paragraph.

What is the required form of the extension fees check?
Please visit the Procedures webpage of Ofori's website under the Closing Extension Policy paragraph.