How Do You Buy HUD Homes As Residences?
Perhaps you don’t want to buy a foreclosure as an investment. You want to buy a home to live in and you don’t want to spend a small fortune on the purchase. HUD homes are a great option for the occupant-homebuyer for a few reasons: 1) HUD homes mean instant equity. Many of these homes are sold at below market value. The exact discount varies, but even small discounts can mean big savings over time. For example, let’s say that you purchase a $100 000 HUD home for $80 000. Not only do you not have to borrow or repay that $20 000 difference, but you do not have to pay interest on that amount. That amount counts towards the equity of your home. Having equity in your home raises your credit rating and can mean a better loan interest rate as well. In the event of an emergency, equity in your home protects you, since it is an asset you can borrow against. 2) HUD homes offer similar variety as the traditional real estate market. You can find HUD homes in just about every size, style, and commu
