As a HUD approved listing broker, F. C. Tucker is required to offer training to answer your questions and assure that your HUD Home buying and selling experience goes as smooth as possible. 

 On this page, you will find HUD Homes info specific to buyers and selling agents.  Many of your questions will be answered here, however, for those of you who need additional information, we offer FREE HUD Training in several formats for your convenience.

If you need assistance please contact us via email or phone.

*IMPORTANT UPDATE -   Buyer's Agents must accompany and provide access each time an inspector, contractor, buyer, or non-FHA appraiser accesses the property.  Buyer's Agents are responsible for ensuring the property is secure after each inspection.  Listing Agents are not allowed to provide key codes or lockbox codes to inspectors, contractors, buyers, or non-FHA appraisers.  Licensed FHA Appraisers are allowed to have the lockbox codes to complete appraisals.

Q & A for Buyers and Agents

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 sell HUD homes?

Any licensed real estate agent or broker who is registered with HUD may sell HUD homes.

How do I register to sell HUD homes?

The Principal Broker for your company or office must register and registration must be renewed annually. To register and obtain your NAID number please follow the link at the bottom of the page and allow 6 to 8 weeks for processing.

What is a NAID number?

A NAID number is a Name Address Identification Number issued by HUD. This number allows the agents and brokers to submit bids on behalf of prospective buyers of HUD homes.

Who Can Buy a HUD Home?

Anyone who has the required cash or can qualify for a loan (subject to certain restrictions) 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.

Should I Get a Home Inspection?

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 an inspection from a licensed professional home inspector prior to submitting an offer to purchase.

If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in applying for an FHA 203(k) Rehabilitation Loan. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. FHA's 203(k) Rehabilitation Loan is designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property.

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.

Does FHA Offer Any Special Discount Sales Programs?

FHA REO 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. Read more about these Good Neighbor Next Door Initiatives.  You can also view maps of REO properties and special programs such as Revitalization Areas with HUD's Single Family Home Locator.

Do I need a Realtor to place a bid for me?

Yes, please contact a Real Estate Agent of your choice that is HUD registered. If you are not working with a Real Estate Agent, please contact the Listing Agent for more information or go to for a list of available brokers in your area.

How do I find a property to bid on?

HUDHOMESTORE.COM shows all available properties that are currently on the market. You may also contact a Real Estate Agent of your choice that is HUD registered.

What are the different bid statuses?

AC: Accepted - The AM has ACCEPTED your bid. Please ensure that all documentation is in order and has been sent to the AM for review. Failure to do so in a timely manner may result in your bid being canceled.

 CA: Canceled - Your bid was canceled by the AM.

 OBC: Other Bid under Contract - Your bid was NOT selected. The AM entered into a Sales Contract on another bid. If you elected your bid to be a backup, your bid will be saved for future consideration in case the contract gets canceled.

 OBS: Other Bid Selected - This bid has NOT been selected. The AM has a preliminary contract acceptance from a different bidder for this property. If you elected your bid to be a backup, your bid will be saved for future consideration.

 PR: Pending Review - Your sealed bid is Pending Review and is not currently available to the AM. You cannot modify or withdraw this bid. Bids from a previous bid-opening date are still under review. The AM does not have any additional information at this time.

 SB: Sealed Bid - Your bid is sealed and is not available to the AM. You can modify or withdraw the bid.

 UR: Under Review - The AM is currently reviewing your bid and others from this bid-opening date.

 WI: Withdrawn - You withdrew your bid from consideration before the AM reviewed the bid.

How can I obtain financing for my property?

Please contact a lender or mortgage broker.

Do owner-occupants have a priority in bidding?

Yes, there is an initial owner-occupant period set aside at the beginning of the bid process.

What are my financing options?

You can use FHA or conventional financing to purchase a HUD home. You may also purchase a property with cash.

I am an investor. When can I bid on a HUD property?

During the exclusive listing period, bids may be submitted by Owner Occupants. At the conclusion of this exclusive listing priority period, all general public bids will be accepted.

If I don’t like the home that I chose, can I decline the acceptance?

The purchase of the property may be declined at any time, but may be subject to earnest money forfeiture.

What is the earnest money held for, and can I get it back?

Earnest Money is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious about wanting to complete the purchase. If the seller accepts the offer, the earnest money is held in escrow by the real estate broker or by a settlement or title company until closing and is then applied to the buyer’s portion of the remaining costs. If the offer is rejected, the earnest money is usually returned, since no binding contract has been entered into. If the buyer retracts the offer or does not fulfill its obligations under the contract, the earnest money is forfeited.

When can I complete a home inspection on the property?

All purchasers are strongly encouraged to perform a walk through inspection at or near the date of your contract acceptance and, again, immediately PRIOR to closing. If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify HUD’s property manager of the damage. The purchaser or agent should complete the Property Damage Report and fax it to the appropriate fax number listed on the form. Reporting the damage does not guarantee the correction of the problem that has been discovered. The lack of written documentation describing property condition at contract acceptance, however, will preclude consideration for repairs or price adjustments in the event of subsequent damage. Each case will be looked at independently and a determination will be made as to whether the damage will be repaired (or not repaired) or, under some circumstances, credits given at closing. The buyer assumes full responsibility for the property and its condition on the date of closing. HUD assumes no responsibility and will make no settlement for damages reported to HUD after the close of escrow.

Can I make repairs to the property if needed prior to purchase?

HUD properties are sold as-is with no warranty. No repairs should be performed on a property until after the new owner has taken possession of the property.

Does HUD give money for repairs to the property?

No. However, a home buyer may utilize an FHA 203K streamline loan to finance repairs on the property.

How much money do I have to put down on a home?

The answer depends on the type of financing being used. Please contact your lender.

How do I get access to show the property?

Please contact a Real Estate Agent of your choice that is HUD registered. If you are not working with a Real Estate Agent, please contact the Listing Agent for more information.

How can I cancel my Bid?

If you are awarded a property either by Lottery or the General List, and you cannot complete the transaction, you will need to submit the Electronic Bid Cancellation form printed on your Broker’s letterhead. The cancellation form can be found in the forms section of this website.

Will HUD pay for any closing costs?

HUD will allow to be deducted from its proceeds, purchaser financing and closing costs that are considered to be reasonable and customary in the jurisdiction where the property is located. In no event may these costs exceed 3% of the property’s gross purchase price. Please reference HUD Notice H2006 -12 for additional information. Please refer to page 2 of your state/regional Forfeiture and Extension Policy for a list of the closing costs that will automatically be paid by HUD and other closing costs that may be paid by HUD.

Why do I have to get a Pre-Qualification Letter before I bid?

A Pre-Qualification Letter must be obtained prior to bidding on a property. This is to avoid having to tie up the property with a transaction that is unlikely to close. The Pre-Qualification letter must be directly from the lender (NOT the mortgage broker) giving a current date and an amount of the loan that is acceptable. It should also include the name the buyer(s) whose credit report was reviewed and approved by the lender.

What is the Good Neighbor Next Door Program?

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount from the list price of the home. In return you must commit to live in the property for a certain amount of time.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program.

How Do I Participate in Good Neighbor Next Door Program?

Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD’s regulations for the program.

The number of properties available is limited and the list of available properties changes weekly.

Does HUD have special programs for Non-Profits and Local Government Agencies?

Another one of HUD’s Special Sales Program under the Good Neighbor Initiatives is the Direct Sales to Non-Profit Organizations and Government Agencies. This special sales program under which approved non-profit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs. 

If an investor or any buyer gets a property awarded but lender does not accept HUD’s appraisal, and their own value comes in lower in another appraisal, can HUD adjust price?

Absolutely not.

If someone does not have a social security number is there any way for them to bid?

If a buyer has a TIN or EIN, they are allowed to bid. However, if they are an Owner Occupant, they must prove that they will be living in the States for at least a period of 12 months to cover the Owner Occupancy period.

What if there is a lien on a property? Who pays for it?

All homes must have a “Clear Marketable Title” which means that a buyer must have a clear title. Most times when a county places a lien on a property, HUD pays the lien, providing it’s a straightforward lien such as unpaid utility/county bills.

*Click on the above picture to be taken to to view available HUD properties.


Click on the HUD link below or the one at the top of the page to view current HUD Listings.