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Frequently Asked Questions: 

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 you have to buy HUD homes through a Real Estate Agent?

You can only purchase a U.S. Department of Housing and Urban Development property through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price. Meaning that you can have Mark Novak as an agent of your interest and H.U.D. will pay the commission!

Who can buy a HUD home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

How do you find government-repossessed or HUD homes?

You can locate these properties by clicking on the foreclosure tab above. Or you can contact Mark Novak directly and he will be happy to get you a list of HUD foreclosures in your preferred area.

How much Down Payment is required to purchase a HUD home?

Down payments vary depending on whether the property is eligible for FHA insured financing, which would require 3.5 percent. (Grant Money is Available to most purchasers who have not owned a home in 3 years) If not, down payments range from the conventional market's 5 to 20 percent.

Are there any special programs?

Properties in designated areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments. Read more about these Good Neighbor Initiatives.

Should I get a home inspection?

Even though HUD provides a complete inspection report for every property, we encourage you to get your own inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.