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Who Can Buy a HUD Home?

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 registered bidders can make offers on properties. Home buyers must use a registered selling broker or selling agent to make an offer on their behalf.

Owner Occupant: Eligible owner occupants are individuals with a valid SSN who have not purchased a HUD property with the past two (2) years. They can bid on homes in the exclusive or extended periods. Owner occupants rank above nonprofits and government agencies in the bid selection process for exclusive and extended listings.

Investor: Eligible investors are individuals with a valid Social Security Number (SSN) or Employer Identification Number (EIN). They can only bid on homes in the extended phase and are ranked below other types of bidders in the bid selection process.

Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following web page http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm. GNND buyers can bid in lottery, exclusive, and extended phases, but can bid exclusively on insured single unit homes in revitalization areas in the lottery phase. GNND buyers are given preference over government agencies and nonprofits in the selection of a bid-winner in the lottery phase.

Nonprofit: Eligible nonprofit organizations,

(see http://www.hud.gov/offices/hsg/sfh/np/np_home.cfm) 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. Nonprofits rank below Government Agencies in the bid selection process for the lottery, but above them for exclusive and extended listings. Nonprofits cannot bid for dollar homes.

Government Agency: Approved 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 can bid for Dollar homes.

See http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm for more information.

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