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HUD Frequently Asked Questions
What is HUD? The U.S. Department of Housing and Urban Development. Please visit for additional information.

What is a HUD home? A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
Do I need a real estate agent to place a bid for me? Yes, only licensed real estate agents can submit bids. In addition to being a  HUD listing broker, Better Homes and Gardens Real Estate Metro Brokers can submit bids, on your behalf, on HUD homes. Simply contact us at 404.843.2500, and we’ll begin assisting you immediately.
How do I find a property to bid on? Our website has information on every HUD home available for sale in our market area. Simply insert your search criteria on our home page under “Search Now” or click on “Find a Home” above… and start shopping!

Do owner-occupants have a priority in bidding? Yes, there is an initial owner-occupant period of 30 days set aside at the beginning of the bid process which is referred to as the “Exclusive” bid period.

What are my financing options? You can use FHA or conventional financing to purchase a HUD home. You may also purchase a property with cash. If FHA financing is utilized, Owner Occupant borrowers have a minimum down payment requirement of only $100.
How can I obtain financing for my property? Metro Home Mortgage offers a full array of financing options including FHA. Contact one of loan representatives for a free pre-qualification and review of available programs.

What is the Good Neighbor Next Door (GNND) program? The good neighbor next door program allows teachers, police officers, fire fighters and EMS personnel to purchase HUD properties that are located in a designated revitalization area for a 50% discount if they live in the property for 36 months. More information is available online at

Will HUD make any repairs to the properties? HUD properties are sold as-is with no warranty. After your bid has been accepted, you are strongly encouraged to have a professional inspection done on the property. If there are unexpected surprises relating to the condition of the property, you will have an opportunity to cancel the contract.

Will HUD give money/credit for needed repairs to the property? No. However, you may wish to utilize an FHA 203K loan to finance repairs on the property. Depending upon the 203K program being utilized, funds may be escrowed for up to $35,000 for repairs to be done after closing. Very few lenders have the expertise necessary to process one of these loans, but Metro Home Mortgage has extensive experience in these programs.

I am an investor. When can I bid on a HUD property? During the Exclusive bid period, bids may be submitted by Owner Occupants. At the conclusion of this exclusive listing priority period, all general public bids will be accepted.

Is an earnest money deposit required? Yes. HUD requires earnest money in the amount of $500 for purchase prices under $49,999 and $1,000 for purchase prices $50,000 and higher. Certified funds are required.

Will HUD pay closing costs? Yes. HUD will pay up to 3% of the purchase price in closing costs.

Can I have a home inspection done?  Yes. Although all HUD properties are sold "As Is", HUD strongly encourages the purchaser to have a professional home inspection. It is the purchaser's responsibility and expense to have utilities activated in order to have inspections performed. If the property has been winterized, the purchaser will also be responsible for a re-winterization fee.

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