Pasted directly from www.hudhomestore.com FAQ. To find answers to any question regarding the purchase of HUD Homes, go directly to the page here!
HUD has identified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only HUD-registered bidders can make offers on properties. Homebuyers must use a HUD-registered Selling Broker or Selling Agent to make an offer on their behalf.
Owner-Occupant: Eligible owner-occupants are individuals who have not purchased a HUD property as an owner-occupant within the past two (2) years. They can bid on homes in the Exclusive or Extended periods.
Investor: Eligible investors can bid on homes only in the Extended period.
Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following Web page – http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/gnndabot.
GNND buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. During the Lottery phase, GNND buyers (1) get a 50% discount off the HUD appraised value, and (2) are given preference over Government Agencies and Nonprofits in the selection of a bid-winner. After the Lottery phase, GNND buyers are not eligible for the 50% discount.
For example, if HUD lists a home at $100,000 and the home is in the Lottery phase, a GNND buyer can buy it for $50,000 provided they occupy the home as their personal residence for the required 36-month occupancy period. If they qualify for any FHA-insured mortgage program, their down payment is only $100 and they may finance closing costs.
Nonprofit: Nonprofit organizations need a valid HUD NAID, and they must be registered on HUD Homestore. They use that NAID to place the bid themselves (without using a Selling Broker). Nonprofits can bid on homes in Lottery, Exclusive, and Extended phases provided the homes are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Nonprofits cannot bid for Dollar homes. There is no “Selling Broker” commission for bids placed using a Nonprofit NAID, since the Nonprofit is placing the bid themselves.
See http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/np for more information.
Government Agency: Government Agencies need a valid HUD NAID, and they must be registered on HUD Homestore. They use that NAID to place the bid themselves (without using a Selling Broker). Government Agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Government Agencies are the only bidders who can bid for Dollar homes. There is no “Selling Broker” commission for bids placed using a Government Agency NAID, since the Government Agency is placing the bid themselves.
See http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/dhmabout for more information about Dollar homes.
