Frequently Asked Questions
Frequently Asked Questions Regarding Purchasing A HUD Home in Indiana:
What is a HUD Home?
- A HUD home is a property in which the mortgage was guaranteed by the government (FHA) and the property was foreclosured upon.
How Much Earnest Money Is Required?
- $500 for homes $50,000 and under
- $1,000 for homes $50,000 and up
Can I use my own real estate agent or do I have to use the HUD listing broker?
- Yes – As long as your agents office is an HUD approved agency. Our office is approved through HUD and we would love to represent you in your HUD home purchase.
Are HUD Properties easy to purchase?
- Yes – We believe so! The process and paperwork are a little different than a normal purchase. The ORR Team has years of experience dealing with HUD properties.
Do I have to buy a HUD property “AS-IS”?
- Yes and No – HUD WILL allow you to perform inspections once your bid is accepted UNLESS INVESTOR OR “UNINSURABLE” SALE. Actually HUD encourages inspections. They do request a inspection fee along with your earnest money in order to do this AND you must turn utilities on temporarily. If a problem arises during your inspections you will have the opportunity to cancel your offer.
What does the Escrow Amount mean?
- This is a number that you can addon to your FHA mortgage in addition to your purchase price in order to have those items repaired after closing. For example if the purchase price was $60,000 and the escrow amount was $3,800 you could add the $3,800 on top of the purchase price to complete the noted escrow repairs!
Considering purchasing a HUD properties? Call Patrick or Ryan 765-212-1111, we would be glad to guide you through the process! We have years of past HUD sales and experience. Items to change often, please call us for up-to-date information regarding purchasing a HUD Home.