HUD Articles
"Is a HUD home Section 8?"
February 15, 2023
It may be surprising to some people, but as a listing broker, I have heard this question many times over the last twenty years. If you are reading this, I am here to tell you that these are two completely different types of transactions.
Section 8 refers to the Housing Act of 1937. This is housing assistance for tenants who qualify with low-income households. HUD (U.S. Department of Housing and Urban Development) manages this program. To assume most or all of the homes being rented using Section 8 are in poor repair is a false generalization.
HUD homes or HUD-owned homes are 1- to 4-unit residential properties acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. (The lender forecloses and files the insurance claim with HUD) HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Some of these properties will require extensive work, some only require cosmetics, and some are move-in ready! HUD places a priority on owner-occupants before allowing investors to purchase.
