In an effort to increase the affordability of homeownership, the Federal Housing Administration (FHA) is announcing sales incentives on purchases of HUD Homes in Michigan. These incentives are available on HUD homes sold to owner occupant purchasers with a minimum sales price of $25,000.

Buy a HUD home with only $100 down and receive $2,500 in Incentives!

• Property must be purchased using FHA Financing.
• Property Purchase Price must be $25,000 or more.
• The $2,500 sales incentive can be used for the following items:
  • Closing costs
  • Tax pro-rations
  • Repairs to the property
  • Replacement of items in the home

What is a HUD Home?

A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Who can buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

To see if you qualify for HUD’s $100 Down Program, please click here.

How are HUD Homes sold?

All properties available for purchase by the public are offered through HUD registered brokers. Only real estate brokers registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.

To receive a list of available HUD homes, please click here.

What Are Some of the General Sales Conditions?

HUD Homes are sold in their as-is condition without warranty. Because of HUD's as-is policy, HUD Homes can often be a great opportunity for the fixer-upper. Not every HUD Home needs fixing up, but when one does, it can be a real bargain. For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. Also, keep in mind that on most sales the buyer can request HUD to pay all or a portion of certain financing and closing costs.

HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.

Are there any special programs?

Properties in designated areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments.

Should I get a home inspection?

We encourage you to get an inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.