The US Department of Housing and Urban Development (HUD) administers the Federal Housing Administration (FHA) residential lending program. The FHA helps people get low down-payment mortgages, primarily to buy single-family homes. However, when those people default on their mortgages, HUD frequently ends up owning the property, which is sold to recover the money lost on the foreclosure.

This means you’ve got a motivated seller, which can frequently lead to good deals. For example, in Florida, qualified buyers with FHA financing who plan to occupy the home may be able to pay only $100 as a down payment. HUD homes are initially offered to people who are buying the home as their primary residence. After 30 days, unsold properties are available to any buyer, including investors.

  • Take a Closer Look: HUD homes are not under warranty and HUD will not pay for any repairs, so the new homeowner will be responsible for any work that’s needed. That makes it very important to have the home inspected by a licensed home inspector to accurately determine its condition before making any offers.
  • Loans for Repair: If you’re interested in a HUD home that needs repair, the FHA offers a 203(k) rehabilitation loan that allows homebuyers to finance both the purchase and the repairs of a home with a single mortgage. Part of the loan is used to pay for the home, and the remaining funds are placed in an escrow account and are used to pay for the home repairs. Repairs must total more than $5,000, but no more than $35,000.
  • Special Programs: Some buyers may be eligible for special programs through the FHA. For example, HUD homes in designated revitalization areas may be available at reduced prices to law enforcement officers, teachers, firefighters, emergency medical technicians, and others.

Finding a home

HUD homes are listed on the official HUD website (, along with other information about buying HUD homes. At Embrace Loans, we have extensive experience in HUD homes, as well as 203(k) rehabilitation mortgages. If you have questions about qualifying for a HUD home, rehabilitation loans, or special incentive programs that may be available in Florida, call us today at 407-733-6425.