Frequently Asked Questions
Hurricane Discount Home Sales

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On April 24, 2006, HUD announced that it would sell HUD homes at a discount to evacuees displaced by Hurricanes Katrina, Rita or Wilma. Read the Press Release and more information below.

	Purchasing a HUD home anywhere nationwide.
	Purchasing a HUD home that you are presently renting.
	Lender Questions/Answers about Hurricane Discount Home Sales

Is there a special HUD program that allows hurricane evacuees to purchase HUD homes?

Please note that this special program that allows hurricane evacuees to purchase HUD homes is ending. In addition to the requirements listed below, the lottery drawing must occur, and the offer must be tentatively accepted, no later than December 31, 2007 for a purchaser to be eligible for this discount.

HUD homes located anywhere in the 50 states are offered for sale to FEMA qualified hurricane evacuees who will bid on them during a period lasting a total of ten days. Properties appear on the 10-day listing weekly. The 10-day period provides for five (5) days of listing, with buyers having five (5) days to present a completed contract. During 5-day listing period these HUD homes can be purchased by evacuees at a 10% discount from the appraised value of the home. Qualified evacuees are required to submit offers through a licensed real estate broker. In addition, HUD will pay up to 5% of the purchaser's reasonable and customary closing costs in connection with the sale. The purchaser must make a minimum earnest money deposit of $500 on the property. If multiple offers are received by HUD on the same property, HUD will select the successful purchaser by a random lottery.

In order to bid on a HUD home, the evacuee is required to have a FEMA registration number and a copy of FEMA's letter stating the bidder's eligibility as a hurricane disaster evacuee. A real estate broker can assist the purchaser in bidding on the home. The home must be purchased with an FHA loan or with all cash.

The purchaser must occupy the home for at least one year from the closing of the sale. For more information contact a real estate broker in the area where the HUD home is located or contact the local HUD Marketing and Management contractor by going to the following website: http://www.hud.gov/homes/index.cfm

Is a hurricane evacuee who is presently renting a HUD home eligible to buy the home?

Please note that this special program that allows hurricane evacuees presently renting a HUD home to buy the home at a discount is NOT presently ending.

A hurricane evacuee who is presently renting a HUD home is eligible to buy the home, and can buy it at a 10% discount from its fair market value. In addition, HUD will fund a repair and maintenance escrow equal to 15% of the discounted purchase price to help pay for any repairs that may be needed to fix the home and to pay delinquent utility accounts. HUD will also pay up to 5% of the discounted sales price toward reasonable and customary closing costs for the buyer. The buyer must purchase the property with an FHA mortgage or with all cash.

The renter may purchase the home at any time during the lease period but must notify HUD's Management and Marketing (M&M) Contractor of the intent to purchase no later than 60 days prior to the expiration of the lease of the intent to purchase. Tenants will be notified in writing by the M&M contractor of the ability to purchase the home. The M&M contractor will also notify the tenants by mail of the names and locations of housing counselors in the area so that the tenants can take advantage of these counseling services.

Buyers are required to occupy the home for one year from the closing date of the sale.