If you’ve been struggling to find a home you can afford, one place you might not have considered looking is the HUD Home store. This online selection of homes often has great properties that buyers, particularly low-income buyers, can benefit from.

This guide will walk you through everything you need to know about the HUD Home store, including what HUD homes are, how to apply for one, application requirements, and financing options.

What is a HUD Home?

HUD homes are one to four unit residential properties that were foreclosed on by FHA lenders. Once the home is foreclosed, the federal government grants ownership of the property to the U.S. Department of Housing and Urban Development (HUD). These homes then become listed for sale on the HUD Home store.

What is the HUD Home Store?

The HUD Home store is an online website run by the government that lists all available HUD homes for sale. Buyers can view these homes by state, filter based on specified criteria, and even set up searches to alert them when new homes matching their criteria become available.

HUD Home Application Requirements

In general, almost anyone can apply to purchase a HUD home, but HUD offers preferential treatment to buyers who are also going to occupy the property. While investors can purchase HUD properties (though the process is fairly complicated), it’s preferred that residents looking for a new home apply over investors.

The only other requirement for purchasing a HUD home is ensuring you can get approved for a mortgage and have not purchased a HUD property within the past two years.

HUD Home Application Process

The first step buyers must take when applying for a HUD home is to partner with a local real estate agent. This is a requirement in order to purchase from the HUD Home store, and HUD can help connect you with an agent if you do not already have one.

From there, buyers will need to apply for financing. While there are multiple financing options buyers can explore, most HUD home applicants opt to use FHA financing.

In order to qualify for an FHA loan, applicants must have:

  • A credit score of 580
  • 3.5% of home value for down payment
  • Proof of income
  • Job history
  • Two years worth of tax returns

Applicants also must meet first-time home buyer requirements.

Additional HUD Financing Options

In addition FHA loans, HUD offers a variety of special buyer programs to help low-income families better afford a new home. These programs include the One Dollar Home Program, The Good Neighbor Next Door Program, and the NonProfit Program.

One Dollar Home Program

This program allows local governments to purchase HUD properties in order to assist low-income families in their communities. This program is only applicable to properties valued at $25,000 or lower that have sat on the market for more than 180 days.

The Good Neighbor Next Door Program

Law officers, medical rescue technicians, firefighters, and K-12 teachers are eligible to apply for this special HUD program. This program offers approved applicants in one of the mentioned occupations 50% off the price of a home. To qualify, buyers must live in the home for at least three years.

The NonProfit Program

Churches and other nonprofit faith organizations can search for housing for up to 30% off the list price. These organizations often purchase homes that they can resell to low-income residents and members of their religious community.

Touring HUD Home Properties

In order to view a HUD home, you’ll need to work through your real estate agent. They’ll work with HUD to set up a convenient viewing time so you can tour the home and get a better feel for the property.

Once you’re ready to make an offer on a home, you’ll also need to work through your agent, who will present the offer to HUD. Your real estate agent will be registered on the HUD website and will bid on your behalf — buyers are not able to register and bid on homes on their own.


HUD homes are a great option for low-to-mid income families who are searching for affordable properties. Anyone curious about HUD housing should connect with a local real estate to get started, view available properties, and make an offer on HUD homes.

You can find a local real estate agent near you or let Clever connect you with a talented agent who can offer a home buyer rebate in approved states. Clever Partner Agents will help you navigate through the entire buying process, to make it as seamless and painless as possible.

If you’re interested in browsing HUD homes, you can visit the HUD Home store website here. You can get connected with a local Clever Partner Agent by filling out the online form.