HUD Home

These are homes which have an FHA loan or other types of government-insured mortgage on them but had to go through a foreclosure. HUD stands for the US Department for Housing and Urban Development. Because FHA (Federal Housing Administration) loans are insured by the government when a homeowner defaults on his or her mortgage payments, the government repossesses the property. But the government isn’t looking to have a long list of homes on its books so it’s going to want to get rid of this property as soon as possible. HUD homes are typically discounted to a price below market value. This makes them a great contender for your next real estate investment. There are many other benefits which come with investing in HUD homes, but also a couple of risks to look out for.