What to Know About the HUD Home Store

by tempuser

Are you looking to buy a new home? Well, you might not know this, but you can find affordable housing with the United States Department of Housing and Urban Development (HUD). The “HUD Home Store” is a tool that can help you find a home that can fit your budget. There are different properties available, which is why you should look deeper into this housing store. This article will explain the HUD Home Store and the different properties on it. 

Kinds of Properties You Will Come Across on the HUD Home Store

The HUD Home Store offers real-estate owned properties that come in the form of single family homes. If you want to find available HUD properties, then it is pretty easy to do so! You can also find information that could help you out during the home-buying process. Furthermore, people are not the only people who can look through this store. Other individuals and agencies can use the HUD Home Store too! That could include state governments, local agencies, and brokers. If you are a real-estate broker that the HUD approves of (or a local organization), then you can find this store as a useful platform to bid for properties on behalf of your client.  

When people visit the HUD Home Store, they might be surprised at what they actually find there. Some homes that they can come across include: 

  • Foreclosures
  • Homes that participate in the Good Neighbor Next Door (GNND) Programs
  • Dollar Program Homes

You should keep in mind that these homes typically reside in certain revitalization areas. This online store works differently than other home-buying platforms, though. The first thing the HUD Home Store does is evaluate the property before putting it up for sale. An evaluation allows the HUD to figure out whether the property can benefit local governments and non-profit organizations. If the property does not fit the criteria for the local programs or organizations, then the website offers these homes based on level of need. Once a specific time-frame passes, the store puts up the property for sale to the public. 

HUD Properties That Face Foreclosure And How The HUD Sells These Homes

Single unit to four unit HUD homes that face foreclosure from FHA-insured mortgages are one of the more popular options. Properties from other mortgages will not be available on the website. If you are wondering what these mortgages do, then let’s give you more context. These mortgages are offered thanks to the United States Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA). That is why homes that come from foreclosures on FHA-insured mortgages are the responsibility of HUD to manage. These mortgages help lenders so that in cases where foreclosures happen, lenders are sheltered from heavy losses! Instead, it’s up to HUD to try and sell the foreclosed home as a means of bouncing back from any loss they’re facing.

The only option to buy a home from the HUD Home Store is through a real-estate broker that is registered with the HUD. However, these brokers need to go through a process to get approval to present a contract and buy these homes. These brokers know more about the local housing market and you might not find the assistance you need with the HUD. Since the HUD is understaffed and might not offer enough support on home-buying aspects, brokers could fill the gap!

What are the Properties’ Conditions?

Before you start looking at houses, you should know that these homes might not be in the best condition, since they come from a foreclosure. Typically, these homes are available in the condition that the homeowners left them in. That means that the HUD would not fix any damages to the property and the buyer will fix it, instead. 

Homes from the Good Neighbor Next Door (GNND) Program

The HUD Home Store also offers properties for the GNND program, which helps people in qualifying job positions. These positions would be teachers for all grades, law enforcement officers, firefighters, or Emergency Medical Technicians (EMTs). So, if you work in one of these positions, then you might be in luck. This program cuts 50% of the home’s price for those that are eligible. 

Those that receive GNND benefits must sign a second mortgage and a note for the discount amount. There are no requirements for payment or interest, but you need to meet other requirements. 

The HUD Home Store offers a limited number of GNND properties that normally change every week. If you are wondering why, then it is because this store can offer access to these homes for only one week. Buying these types of properties comes with specific instructions, which is important to consider. Furthermore, when several people show interest in a specific property, then the program conducts a random lottery to pick a buyer. 

GNND Requirements to Qualify

There are two kinds of conditions that buyers need to meet to get these homes, though. The first kind of condition depends on the property, while the second set of conditions depend on their position. The buyer must stay in the home for at least 36 months and it should be their main home. Also, the homes’ locations should be in revitalization areas. 

For the second set of conditions, the buyers need to work full-time in their position and work in the nearby surroundings of the property’s location. Furthermore, teachers need to work in a private/public/state-accredited school, where they teach any grade from pre-K to 12th grade. As for law enforcement, they need to work in an agency of law enforcement that belongs to a federal, state, local, or Indian Tribal level. Additionally, officers need to swear that they will abide by the law and arrest anyone who goes against the law. Last but not least, EMTs and firefighters need to work in a fire department of an emergency medical response unit. 

Dollar Program Homes

Did you know that the HUD Home Store offers properties for only a dollar? Yes, it’s true. However, only local governments can qualify to buy properties for $1. The main goal of the Dollar Home Program is to provide affordable housing through these properties. These properties have been foreclosed on, and there are conditions. The homes need to be at a value with a maximum of $25,000 and remain vacant for six months. If properties meet these conditions, then local governments can buy these homes for one dollar! Which they can then offer to the community through different means. 


Buying a home can be stressful, especially when you don’t know where to start looking! Well, there is a federal opportunity that can help you out! The HUD Home Store offers different properties from foreclosure homes to Dollar homes. If you want to look for a home that is relatively cheaper than the average housing prices, then you can always consider this HUD tool!

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