HUD Funding Loans
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.