Buying a HUD Home: Step-by-Step Guide

If you've been considering purchasing a home, especially one at a potentially lower price point, you might have come across a HUD Home. These properties, managed by the U.S. Department of Housing and Urban Development (HUD), can be a great opportunity—but the buying process is a little different from the traditional route.

Here’s a simple step-by-step guide to help you understand how to purchase a HUD Home and feel confident in navigating the process.

Step 1: Start with HUDHomestore.gov to find a home

The first thing you’ll want to do is visit www.HUDHomestore.gov. This is the official website where all available HUD Homes are listed.

You can search by:

• State, city, or ZIP code

• Buyer type (owner-occupant, investor, etc.)

• Price range

• Property features

Each listing includes photos, property condition reports, and important dates like bidding deadlines.

Step 2: Know Who Can Bid—and When

One unique aspect of HUD Homes is the priority bidding system. When a home is first listed, it's available only to owner-occupants, nonprofit organizations, and government agencies for an exclusive period (usually the first 7–15 days).

After that period ends, the property becomes available to investors and all other buyer types.

This system encourages homeownership and community stability by giving everyday buyers a head start.

Step 3: Work with a HUD-Registered Broker

You cannot submit a bid yourself—only a HUD-registered real estate broker can place a bid on your behalf through HUDHomestore.gov.

The bidding process for these homes is a "blind" auction, meaning bidders submit their offers (via HUD-registered real estate Broker) without knowing the offers of other potential buyers. 

At Home Alliance Realty, we are a proud HUD listing and registered selling broker, experienced in managing the nuances of HUD transactions from start to finish.

Step 4: Submit Your Bid (and Act Fast!)

Once you’ve found a home you love:

• Work with your agent to decide on a competitive bid

• Prepare your earnest money deposit (usually $500–$2,000 depending on purchase price)

• Submit all necessary paperwork quickly

Timelines are tight. HUD strictly enforces deadlines for submitting contracts, deposits, and additional forms. Delays can result in cancellation of the accepted bid, so being prepared and organized is key.

Step 5: If Accepted, Move Forward with Inspections and Closing

Once your bid is accepted:

• A HUD sales contract package will be completed and sent in within 48 hours

• You can schedule a home inspection (at your own cost)

• Buyers have a 15-day timeframe after contract acceptance to conduct a professional home inspection(s)

Remember: HUD Homes are sold as-is, so you’ll want to understand the condition of the home before proceeding with final financing.

Your HUD Home Journey Starts Here

Buying a HUD Home can be a rewarding experience, but it requires a knowledgeable guide. That’s where we come in.

Thinking about placing a bid on a HUD Home? We’re a registered HUD brokerage ready to assist. From finding properties to submitting offers and closing the deal, Home Alliance Realty is with you every step of the way.