How to Buy an HUD Home in California

HUD homes in California are one to four unit residential homes that have been acquired by the United States Department of Housing and Urban Development (HUD) as a result of a foreclosure on an FHA-insured mortgage. When you buy a home from HUD, you can choose from single-family homes or multi-family properties. There are many advantages of buying an HUD home including low-interest loans, reduced closing costs, quick move in and an extensive choice of available houses. HUD also has a wide range of resources available to help you buy, maintain and keep your dream home as well as to help you if you need extra money to make repairs. Purchasing HUD property in California is particularly advantageous to residents in expensive housing areas. Learn more about how to buy HUD homes in California in the topics below.

HUD Homes in California

There is a wide range of HUD homes in California available to residents who are interested. If you wish to buy a home from HUD, then you should have plenty to choose from throughout many California counties. HUD has an extensive website to show you where to find HUD homes depending on the location and what size home you need. Anyone who has the necessary amount of money and meets the eligibility requirements for a loan may buy a HUD home. Initially, HUD homes are available to buyers who will use the home as their primary residence. After this initial priority period, any unsold homes are then offered to other buyers, including investors.

Buying HUD Homes in California

In order to buy a home from HUD, you will require financing. Just one of the advantages of buying an HUD home is that the properties are priced very reasonably. HUD homes in California are not directly financed by the Department of Housing and Urban Development, so you must either use your cash reserves or obtain financing through a qualified mortgage lender. In certain circumstances, you may be eligible for an FHA-insured mortgage to finance your purchase of a HUD home.

To help get you started with buying a home from HUD, there are a number of HUD-approved housing counseling agencies. Not only will these services explain how to buy HUD homes in California, they will also help you understand you financing options. Buying a home from HUD can be a little complicated. To make it less confusing for you, the housing counseling agencies also offer advice on your credit rating and how to apply for an FHA loan. When you have purchased your HUD home, they can also offer advice on how to maintain your home and how to avoid foreclosure.

Where to Find a HUD Home in California

You will have no problem finding HUD homes in California, as they are available in many cities throughout the Golden State. Do not worry about where to find a HUD home, HUD has a user-friendly website that allows you to search for potential homes by area, price and size. Finding and buying a home from HUD will be much easier if you have already pre-qualified for a home buyer loan, that way you know exactly how much you can afford to spend. As well as finding available properties at the HUD Home Store, you may also see homes displaying an FHA sign, which identifies an HUD property before it is listed for sale. During this period, the property is being appraised and any issues involving the title are being resolved.

HUD homes in California also offer a special program called Neighborhood Next Door. This initiative encourages people to buy a home from HUD and enjoy all the advantages of buying a HUD home if they are involved in certain professions. These professions include emergency medical technicians, firefighters, law enforcement officers and teachers. HUD provides a discount off certain properties for those who are eligible for the Neighbor Next Door program. If you are employed in one of the above mentioned fields and you wish to purchase an eligible HUD home, then you must have a bid submitted by a HUD-registered real estate broker.

The Advantages of Buying a HUD Home in California

The advantages of buying a HUD home are numerous. First, you have a wide choice of HUD homes in California so you are sure to find one that will accommodate your family for a price that suits your budget. Secondly, you do not need to worry if you are uncertain how to buy HUD homes in California because you will have help from the housing counseling agency every step of the way.

The main advantage of purchasing a HUD home is the money that you will save. Even if you are finding it difficult to come up with the cost of the closing fee, HUD is there to help you. In many cases, they will pay a percentage of your closing costs, which is particularly helpful if you receive a low income. You may also be eligible for an FHA loan. This is a mortgage insured by the Federal Housing Administration. FHA loans have more flexible qualification requirements and lower interest rates than traditional home buyer loans. Your eligibility for an FHA loan will depend upon your credit score, your income and the amount of money you have available for a down payment.

To learn more about how to buy HUD homes in California, download our comprehensive guide.

What Housing Help Can I Get Through HUD?

California residents can receive various types of housing assistance, from federal housing aid to home loans and more. Additionally, the Department of Housing and Urban Development offers CA residents counseling services, which cover how to avoid foreclosure, how to buy a home and how to rent a living space, to name only a few topics. Find out everything you need to know about housing assistance programs in California by downloading our comprehensive HUD guide.

Who Is Eligible to Receive Housing Help in California?

In order to receive housing help from the state of California, you typically need to meet the income requirements of the specific assistance program you are applying for. These necessary qualifications often refer to the income of the household, based on the number of members. Find out if you and your household are eligible for housing assistance here.