HUD Funding Loans 

Many real estate investors find great deals when they purchase HUD houses. HUD stands for the U.S. Department of Housing and Urban Development. They are a federal agency that insures FHA mortgages. When an FHA loan is foreclosed upon, HUD aquires these houses and makes them available to sell to the public. A national database exists where you can search for HUD houses, and that can be found at http://www.HudHouses.com . 

You should be aware that when looking for properties on HudHouses.com, there is an initial period of time when only the owner-occupants can submit a bid to purchase the house. Once that time period is up, the general public -- including real estate investors -- are open to bid on the house. The bid package must be received within 48 hours of after the bidding is closed. The package must include a cashier's check for the earnest money required, as well as a pre-qualification letter. You can use our FREE Proof of Funds Letter as your pre-qualification letter.

All HUD houses have had a title company do title work on the property. HUD requires that you use this chosen title company. This title company will not allow a back to back closing, therefore if you intend to buy a HUD house, you will need to plan on holding for a minimum of 2 days before you can sell it to your end buyer. Funding for these types of deals typically fall under our Extended Transactional Funding  program.