buying a house

[zenlife2000]

How do you buy a hud house for a $1?

[crisstar]

I never heard of anyone buying a home for $1. That would be impossible because you have to pay all those fees associated with the purchase of a home and it is more than a buck.

[ladavia89]

From the hud site
HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each.

Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.

By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.

[tuyetmai]

From the hud site
HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each.

Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.

By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.

Oh Thank for the information.  I didn't know that.  Have a nice day.

[bob1tina]

How do you buy a hud house for a $1?

  I have no idea but when you find out let me know.  where did you hear this anyways? 

[dmahoney]

Boy if you can do that, great

[kingozzy]

That sounds like a pretty good deal to me! Sign me up too

[lvstephanie]

I wonder if they sell these homes to only low income families, or if it's open to anyone... If it's the latter, then you'll probably have to fight over the properties with house-flippers, banks, and any other investor that thinks they could buy the house for $1, fix it up quickly, and then sell it for a large profit.

[ktheodos]

Sounds almost too good to be true....

[ladavia89]

I wonder if they sell these homes to only low income families, or if it's open to anyone... If it's the latter, then you'll probably have to fight over the properties with house-flippers, banks, and any other investor that thinks they could buy the house for $1, fix it up quickly, and then sell it for a large profit.

HUD is for low income

[crisstar]

Sounds almost too good to be true....

It is. From what I'm reading, HUD puts certain houses for sale for $1 in certain communities. These local governments can buy the house from HUD for $1. Then the local government can fix up the house and sell it to low to moderate income families.

If houses were a dollar don't you think people would be lined up around the block ten-fold trying to buy them? 

[countrygirl12]

I wonder if they sell these homes to only low income families, or if it's open to anyone... If it's the latter, then you'll probably have to fight over the properties with house-flippers, banks, and any other investor that thinks they could buy the house for $1, fix it up quickly, and then sell it for a large profit.

I am pretty sure HUD is for low income.  I have still never heard of this and I wonder if it is just $1 down or something.  I dont see how this could ever work.  Seems like I have heard this before though.

[hawkeye3210]

HUD is a government agency that overseas "Housing and Urban Development". It's for everyone, not just those with low income.

[evefaith]

that's great. how to find that?. were only renting apartment. hoping i can have a chance  to have house of this day.

[kapeh12]

From what I've been reading, if you are interested in purchasing one of these "$1" homes, first you need to see if your community purchases such homes from HUD.  If they do, then you need to find out if you qualify for the local program to purchase such homes.  The homes are not sold directly to the individual families, but to communities that fix up the house and sell it to those who qualify.

One example given was in Gary, IN - qualifications to purchase these homes in their city is your annual income needs to be at least $35,250/year, demonstrate financial ability to bring the property up to code withing 6 months of purchase, and agree to live in the home for a at least 5 years to receive full ownership of the property.

When I was house shopping a few years back, I was looking at foreclosed and short sale homes as potential options.  One thing I learned is if you end up buying a foreclosed home, there is a larger probability that the house will require a lot of maintenance due to lack of upkeep by the previous owners.  The house may be considered cheap at time of sale, but your expenses skyrocket when you discover everything that needs to be fixed.  I classify these under the buyer beware - sometimes you can get lucky, but you really need to do your homework before committing to one of these.

Whether you purchase one of these type of homes, or save up to buy a non-foreclosed home - the most important thing it to ensure your finances are in order so you know you can cover all expenses of the home - not just the purchase price.  There's the escrow (property tax on the property, mortgage interest if less than 20% down, property insurance), utility costs (electric, gas, water, sewer, garbage, other...), property maintenance (lawn maintenance, snow removal), appliance maintenance (furnace, air conditioner, washer/dryer, hot water heater, kitchen appliances,...)

Plus all the extras one needs to maintain a house that you don't think about if you rent - tools, ladders, lawn mowers/shovels, filters, etc...

The more prepared you are with the cost of why you'll need to get (either buy new or get on Ebay/Craigslist/garage sales), and the monthly costs of the home - you should do okay.