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FHA REO & HUD-Owned Homes

Buy a HUD-Owned Property at a Discount With FHA Financing in Maryland

Buy a HUD-Owned Property at a Discount With FHA Financing

When a home purchased with an FHA loan goes into foreclosure, it becomes a

HUD-owned property —and that could be a smart opportunity for buyers in Maryland. These homes are often sold below market value and may qualify for special financing options, including FHA loans.

Whether you're a first-time buyer looking for an affordable entry point, or you're shopping for a home you can fix up and live in, HUD homes backed by FHA financing offer a unique path to homeownership.

What Is a HUD-Owned Home?

When a property financed through an FHA loan goes into foreclosure, the lender transfers ownership to HUD (the U.S. Department of Housing and Urban Development). HUD then resells the home through an online platform, often at a reduced price.

These homes can include:

Single-family homes

Condominiums

Manufactured homes (in some cases)

Multi-unit properties (up to 4 units)

Financing Options for HUD Homes

Most buyers use one of two FHA loan options to purchase a HUD-owned home:

FHA 203(b) Loan

Use this for homes that are in livable condition and need minimal repairs.

Learn more about the 203(b) loan »

FHA 203(k) Loan

If the property needs repairs or upgrades, a 203(k) renovation loan allows you to finance both the purchase and the renovation costs in one mortgage.

Explore how the 203(k) loan works »

It might be easier to get pre-approved for a mortgage than you ever imagined. We believe in making it as easy as possible for everyone to purchase their own home. Click here now to get started, it only takes a few minutes online.

How to Find HUD-Owned Properties

HUD homes are listed on the HUD Homestore website. You’ll need to work with an FHA-approved real estate agent to place a bid. These homes are sold "as-is," and while you can’t negotiate repairs with HUD, you can still request an independent home inspection before purchase.

Benefits of Buying a HUD-Owned Home

Often priced below market valueMay qualify for FHA-insured financingAvailable to owner-occupants before investorsPotential low down payment optionsRenovation potential using FHA 203(k)

Important Considerations

HUD homes are sold as-is (you’ll cover any needed repairs)Offers must be submitted through a registered HUD agentYou’ll need pre-approval before placing a bidProperties may have inspection or habitability issues

Explore More FHA Loan Options

Buying a HUD-owned home is just one way to use an FHA loan. Explore all the FHA loan types available to buyers in Maryland by visiting our FHA Loan Overview Page.

Let’s Help You Secure the Right HUD Home

We’ll guide you through the process—from getting pre-approved to selecting the right FHA loan product for your budget and the condition of the home. HUD properties move quickly, so it’s important to be prepared.