Wednesday, July 8, 2020

HUD homes may be affordable but not for everyone

HUD homes are known to offer some of the best deals when it comes to buying a home under market value. The homes are affordable because of their foreclosure status and the government’s desire to recover money lost from these homes. Yet even as affordable as they may be relative to other properties in the market, not everyone can afford to buy these homes.

The notion of affordability is very relative and depends entirely on people’s personal circumstances. So while an affordable HUD home may mean that one buyer can readily acquire the financial means necessary to make the purchase, affordability may mean that another does not qualify for the financial assistance they need to buy the home. And while there are financial assistance programs that help low income earners get the funding they need in order to buy the homes they want, even here there are prerequisites that preclude some low income earners from others insofar as affordability is concerned.

So the affordability of HUD homes has little to do with their great value, despite the fact of their being priced under market value, and more to do with the relative financial circumstances of the buyers who wish to have one of these homes as their own.