HUD Homes – Great for Homebuyers but a Sign of a Failing Economy

The economy and the housing crisis have kept the prices of residential properties low. These low prices include HUD homes, which have abounded with the many foreclosures happening across the country. In a time when short sales, REOs, auctions and foreclosure listings are dominating the market, it can be quite confusing to make a choice.

HUD homes are homes that original had a FHA insured mortgage, but that mortgage has gone into default. While many feel that the huge foreclosure market, including HUD foreclosures, are a big sign of the failing economy, some economists feel that purchasing these homes can help turn the real estate market around. Others worry that the high percentage of foreclosures listings will cause the economy to take a further hit.

Whether or not purchasing these homes will turn around the housing market and the economy, they definitely offer some excellent benefits to homebuyers trying to find a great deal on a home today. Although dropping home prices may spell out further disaster for the housing industry, lower prices are making it easier for consumers to purchase homes right now.

With homebuyers finding traditional mortgages tough to qualify for right now, non-traditional options are becoming more popular. HUD homes offer buyers to purchase a home for a low price and these homes come with several other benefits as well.

First, HUD will pay up to 5% of closing costs on the home. This alone can save homebuyers thousands of dollars. Buyers can also enjoy the benefit of having a qualified real estate broker prepare and submit their offer on the home, free of charge. Even moving in to these homes can be faster, since homes have already had appraisals done on them.

Although these homes are purchased “as is,” they are often eligible for repair loans. These loans are often built right into the mortgage taken out, making it easy to complete the repairs needed to make the homes livable. Some great deals are available in this economic environment, making these homes an excellent option for many homebuyers to consider.

Those interested in finding HUD homes in their area will find it easy to find local homes by visiting RealtyStore.com. Realty Store offers a helpful search engine that is updated with the latest lists of HUD foreclosures. Prospective homebuyers can search by city, state, county and more, allowing them to find homes that fit their needs in their area. It’s the easy way to find HUD homes and other non-traditional buying options, all in one place.