Major benefits of buying a HUD home

by Rudden|Bobruska Team 06/25/2023

Housing and Urban Development (HUD) properties present unique opportunities for homebuyers. By purchasing a previously foreclosed home, you might save money on the sale and mortgage. But is a HUD home the right choice for you? Here are some of the key benefits to buying a HUD home:


Low Price

HUD wants to recoup the cost of the foreclosure as soon as possible. This translates into lower sale prices. While each property goes through an appraisal process to determine its value, the purchase price is usually under the market average for comparable homes.


Get In Before Investors

HUD homes are sold through auction. The auction process gives special priority to residential buyers by granting them a 30-day period to bid on the home. After that, the auction will open up to investors as well. This head start can help you get a great deal on a home without worrying about an investor taking it at the last second.


Help With Closing Costs

Closing costs are a major expense when buying and selling a home. As an incentive to homebuyers, HUD spends a certain percentage of the home's purchase price to help cover closing costs. This can save a homebuyer thousands of dollars compared to buying a traditional home.


Lower Down Payments

With financing, buying a HUD home is like a traditional home purchase. You can choose from many loan options and mortgage providers. In certain circumstances, buying a HUD home means getting a loan with a smaller down payment. HUD wants to sell the property as soon as possible, so they offer options for low down payments to encourage new buyers.

If you're considering a HUD home, keep these benefits in mind. While it might not be the right choice for every situation, for many homebuyers, the incentives and special perks can greatly outweigh possible drawbacks. 

About the Author
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Rudden|Bobruska Team

Gary Rudden, Lisa Rudden, and Nick Bobruska  

RUDDEN BOBRUSKA TEAM

What sets your team apart from other real estate teams?

There is no team out in the market that offers what we do. All of us are Realtors, but

we each have specialized roles, which make our team so unique!

After decades of living and selling real estate in the DMV, we have established

ourselves as one of the top real estate teams with our market expertise and

cutting-edge technology. Our savvy high-tech marketing is on every website

and social media source. We have a huge network with other top agents, which

helps to premarket homes and discover homes for buyers before they reach the

open market. Our services include professional in-house staging services, broker

expertise in negotiating and navigating contracts, and buyer representation in all

price ranges. Each client has different needs and we create a marketing plan based

on those needs.

Our most distinct feature is our in-house construction and renovation team. We

are literally a full-service, one-stop shop when selling or buying a home!

How does the in-house construction and renovation team work?

All work is managed and completed through our licensed and bonded construction

crew. No need to call outside contractors. We are like “HGTV,” but we just don’t

have a show! Whether it’s a small makeover or a major renovation, we do it all. Our

sellers love this aspect of our team because we make preparing your home for the

market so seamless. Our buyers love the advice and insight we can give for future

renovations and repairs.

Having a licensed Maryland Home Improvement contractor as part of our team

along with the knowledge, experience, commitment and services that we offer, truly

puts our team as a vanguard in the real estate industry.