FAQ’s
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.
If you are an evacuee
displaced by Hurricane Katrina, Rita or Wilma,
you may be eligible to purchase a HUD Home at a
discounted price.
What About Financing?
HUD does not
provide direct financing to buyers of HUD Homes.
Buyers must obtain financing through either their
own cash reserves or a mortgage lender. If you have
the necessary available cash or can qualify for a
loan (subject to certain restrictions) you may buy a
HUD Home. While HUD does not provide direct
financing for the purchase of a HUD Home, it may be
possible for you to qualify for an
FHA-insured
mortgage to
finance the purchase.
Where Can I Learn About Available HUD
Properties?
Any single
family property acquired by HUD FHA will display a
sign identifying who is managing the property before
it is listed for sale. During this time the property
is appraised, title issues are resolved, if
necessary, and a determination is made about the
property's eligibility for HUD's
discount
sales programs. Property
listings are posted on
HUD Home
Store.
HUD Announces Launch of HUD Home Store
HUD Home
Store is the listing
site for HUD acquired single-family properties. This
new site provides the public, brokers, potential
owner-occupants, state and local governments and
nonprofit organizations a centralized location to
search the inventory of HUD properties for sale. In
addition, registered real estate brokers and other
organizations can place bids on behalf of their
clients to purchase a HUD property.
HUD Home
Store also includes many
informative user-friendly features providing advice
and guidance for consumers on the home buying
process.
Assistance Programs in Oregon
Owning a home
is a big part of the American Dream. Here are some
resources that can help you buy, maintain and keep
your home.
Getting Started
-
Housing counseling agencies
- free or low-cost counseling services
for buying, renting, defaults,
foreclosures, credit issues and reverse
mortgages
-
Predatory lending
- beware if you're buying or refinancing
your home; don't become a victim of
unfair lending practices
Buying
a Home
-
Homeownership vouchers
- some public housing agencies help you
become a homeowner through the Housing
Choice Voucher Homeownership Program
Owning
and Maintaining Your Home
Does FHA Offer Any Special Discount Sales
Programs?
FHA or HUD
owned properties located in designated
Revitalization Areas are
available at a reduced sales price to law
enforcement officers, teachers, firefighters,
emergency medical technicians, nonprofits and local
governments.
The Good
Neighbor Next Door initiatives are a collection of
FHA's home sales programs designed to help
communities and promote homeownership.
Help a
neighborhood! Buy a home through HUD's Good Neighbor
Next Door initiative designed to encourage renewal
of revitalization areas by providing law enforcement
officers, firefighters, emergency medical
technicians and teachers an opportunity to purchase
homes in these communities. HUD provides a
substantial incentive in the form of a fifty percent
discount off the list price of eligible properties.
Learn more
about
HUD's Good
Neighbor Next Door Sales
program.
Introduction to the Neighborhood
Stabilization Program
The
Neighborhood Stabilization Program (NSP) was
established for the purpose of stabilizing
communities that have suffered from foreclosures and
abandonment. Through the purchase and redevelopment
of foreclosed and abandoned homes and residential
properties, the goal of the program is being
realized.
NSP1,
a term that references the NSP funds authorized
under
Division B,
Title III of the Housing and Economic Recovery Act
(HERA) of 2008, provides
grants to all states and selected local governments
on a formula basis.
NSP2,
a term that references the NSP funds authorized
under the American Recovery and Reinvestment Act
(the Recovery Act) of 2009, provides grants to
states, local governments, nonprofits and a
consortium of nonprofit entities on a competitive
basis. The Recovery Act also authorized HUD to
establish
NSP-TA,
a $50 million allocation made available to national
and local technical assistance providers to support
NSP grantees.
NSP3,
a term that references the NSP funds authorized
under the Dodd–Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) of 2010, provides a
third round of neighborhood stabilization grants to
all states and select governments on a formula
basis.
NSP Resource Exchange
NSP Resource
Exchange is a one-stop
shop for the information and resources needed by NSP
grantees, subrecipients and developers to purchase,
rehabilitate, and resell foreclosed properties.
There are three primary components to the Resource
Exchange site including:
-
Find a
Resource - a database of policy guidance,
practitioner support tools and training
materials developed by HUD and technical
assistance providers who specialize in NSP-related
activities. It can be browsed by topic,
audience, or type of information.
-
Ask a
Question - a feature that can be used to
direct users to previously asked questions
based on the user’s questions. It also
provides users with a question form that can
be submitted electronically for those
questions and answers that are not listed on
the website.
-
Request TA - a mechanism by which users can
communicate with technical assistance
providers and request support in
implementing NSP activities
The NSP
Resource Exchange can also be used to learn about
upcoming events related to NSP and coming soon the
site will feature tool kits for designing programs
and implementing activities.
Nature of Program
NSP is a
component of the Community Development Block Grant (CDBG).
The CDBG regulatory structure is the platform used
to implement NSP and the HOME program provides a
safe harbor for NSP affordability requirements.
NSP grantees
develop their own programs and funding priorities.
However, NSP grantees must use at least 25 percent
of the funds appropriated for the purchase and
redevelopment of abandoned or foreclosed homes or
residential properties that will be used to house
individuals or families whose incomes do not exceed
50 percent of the area median income. In addition,
all activities funded by NSP must benefit low- and
moderate-income persons whose income does not exceed
120 percent of area median income. Activities may
not qualify under NSP using the "prevent or
eliminate slums and blight" or "address urgent
community development needs" objectives.
Eligible Uses
NSP funds may
be used for activities which include, but are not
limited to:
-
Establish financing mechanisms for purchase
and redevelopment of foreclosed homes and
residential properties;
-
Purchase and rehabilitate homes and
residential properties abandoned or
foreclosed;
-
Establish land banks for foreclosed homes;
-
Demolish blighted structures;
-
Redevelop demolished or vacant properties
Homebuyer Assistance
Homebuyers
cannot receive assistance directly from HUD. NSP
funds can be used to help homebuyers purchase homes,
but they must contact an NSP grantee for application
details. NSP operates on a national scale, but
participation requirements may differ from one state
or city to another. For information on how you may
purchase a home with NSP assistance please contact
an NSP grantee in your area. See
NSP Grantee
Contacts page for
details.
HUD Announces Allocation of $1 billion in
NSP3 Funding
HUD announced
the allocation of $1 billion in NSP3 funding today.
These funds, appropriated by the recently enacted
Dodd-Frank financial reform legislation, have been
allocated by formula based on the NSP1 formula.
· Read
HUD’s press release
here
· Read
NSP3 Notice
here
· View
the funding allocation table
PDF
· View
the target area mapping widget
here
Contact HUD
If you
would like additional information on the program
please use
this form
to contact a HUD NSP Representative.
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