How to buy a HUD home
HUD homes are homes with FHA loans that went to foreclosure and are now sold by the U.S. Department of Housing and Urban Development. They're listed on HUD Home Store, and you bid through a HUD-registered real estate broker. Buyers who will live in the home get to bid first, then investors can bid.
Updated November 2026. A plain-language guide, not legal advice.
- Who sells it
- HUD, the federal housing agency
- Where you find it
- HUD Home Store (hudhomestore.gov)
- How you bid
- Online, through a HUD-registered broker
- Condition
- As-is
Step by step
The order most HUD homes go in. Your county's rules and the deal in front of you can change it.
See HUD homes on the map
Search HUD Home Store
Each listing shows the price, the bid deadline, whether it's open to owner-occupants or investors, and the property condition report.
Pick a HUD-registered broker
HUD only takes bids submitted by a registered broker. Ask whether they've placed HUD bids before.
Look before you bid
Visit with your agent and read the condition report. Budget for repairs, since HUD sells as-is.
Bid in your window
Owner-occupants and some government and nonprofit buyers get the first window. If the home doesn't sell, investors can bid after that.
Close on HUD's schedule
If HUD accepts your bid, the contract sets the deposit and closing date. Have your loan or funds ready.
What can go wrong
Owner-occupant rules are enforced
Buying in the owner-occupant window means you certify you'll live in the home. False certification has serious penalties.
As-is, with repair surprises
The condition report helps, but it isn't a full inspection. Get your own if the listing allows it.
Bid deadlines are firm
Bids close on a set schedule. A late bid waits for the next round, if there is one.
Who you need
Agent who works foreclosures
Sees bank-owned and HUD homes the day they list, and knows which ones sat.
Ask them: How many bank-owned or auction homes did you close last year?
Lender with fast proof of funds
Auctions and bank sellers want proof you can close before they take you seriously.
Ask them: How fast can you send a proof-of-funds letter, and can you close in 10 days?
Contractor or inspector
Turns a guess on repairs into a number you can bid with.
Ask them: Will you walk a home from the outside and give me a range?
Official sources: HUD Home Store, HUD Good Neighbor Next Door
Experts we work with
Local agents who work distressed and off-market homes, and a lender to call before you bid. Ask through us and we'll introduce you by email.
Robert Meche
Broker and owner, SWR Group at Keller Williams
Collin County, TX, Dallas County, TX, Denton County, TX, Cooke County, TX
Buying somewhere else? Tell us the county and we'll point you to someone.
Recommended lender
Cole Boren
Branch Manager, CMG Home Loans
Cole has nearly three decades in mortgage lending. He helps buyers plan a purchase around the bigger picture: the cash they keep, the home they own now and the timing of the move.
- What you can qualify for now
- Buying before you sell
- Which loan fits the home you want
Cole Boren, NMLS #384591. CMG Home Loans, NMLS #1820. Equal Housing Opportunity. Licensing varies by state. Check his NMLS record.
Real Estate Intel recommends people we work with. You're free to use any agent or lender.
Questions buyers ask
Who can buy a HUD home?
Anyone, but not at the same time. Buyers who will live in the home get the first chance to bid, then investors can bid on homes that are still available.
Do I need an agent to buy a HUD home?
Yes. HUD only accepts bids from HUD-registered real estate brokers.
What is Good Neighbor Next Door?
A HUD program that offers law enforcement officers, teachers, firefighters and emergency medical technicians 50% off the list price of eligible homes in revitalization areas, if they live there for 36 months. Check HUD's site for current homes and rules.
Can I use an FHA loan on a HUD home?
Often, yes, if the home meets FHA's condition rules. Each listing notes whether it's insurable, so check with your lender.
Get your county's new HUD homes every week
New default notices, sale dates and homes that went back to the lender. Free, one email a week.