Why HUD Homes Might Be the Best Deal for First-Time Buyers — If You Use the Right Broker

For first-time buyers, finding an affordable home in a good neighborhood can feel like searching for a unicorn. But HUD homes—properties acquired by the U.S. Department of Housing and Urban Development after FHA loan foreclosures—might be one of the best-kept secrets in real estate. And no one knows how to help you get one better than House Karma.

Why HUD Homes Deserve a Closer Look

HUD homes are often misunderstood. A lot of people think they’re all in bad condition or in rough neighborhoods. That’s simply not true. Many HUD homes are in solid, move-in-ready condition—and located in good areas with great schools, parks, and amenities. Some just need a little paint and carpet. For a first-time buyer, that can mean serious value and a great way to get a home.

First Look Program = First Chances

HUD’s First Look program gives owner-occupants an exclusive chance to buy before investors. Typically, there’s a 15- to 30-day window where only primary residence buyers can bid. This is a golden opportunity—no competition from flippers or investors. But it only works in your favor if your agent knows what they’re doing.

  • Buyers cannot purchase or place a bid on a HUD home directly—they must go through a HUD-registered broker. This is not optional. If your agent isn’t working under a registered broker, they legally can’t submit your offer. That’s why it’s absolutely critical to work with someone who is not only registered but also experienced in the HUD process—otherwise, you could miss out on a great home before you even get started.

The #1 Reason Buyers Miss Out? Agents Who Don’t Know the Process

We see it all the time: a buyer finds a great HUD home, wants to make an offer, but their agent doesn’t know the HUD process—and they lose the home.

HUD homes are not sold like traditional listings. The paperwork, submission process, timelines, and rules are very different. There are no “do-overs” if the offer package is wrong or incomplete. If your agent isn’t trained or if they aren’t working under a HUD-registered broker, you could lose your shot.

Many agents are not familiar with HUD requirements. Worse, many aren’t even allowed to help you buy a HUD home—because only HUD-registered brokers can submit bids. If your agent isn’t working under one, you’re wasting your time.

WARNING!

Unfortunately, some agents may steer you away from HUD homes—not because the homes aren’t a great deal, but because the agent either isn’t registered to sell them or simply doesn’t know the process. And in real estate, people tend to act in their own self-interest. If an agent thinks they can’t make money on a HUD sale or don’t want to bother learning how to properly submit an offer, they may not even mention these homes to you. That means you could be missing out on a great opportunity—possibly the best deal out there—just because your agent isn’t equipped or willing to help. Always make sure you’re working with someone who’s qualified, motivated, and has your best interests at heart.

House Karma Brokers Know the Process Cold

All House Karma brokers are HUD-registered. Many of them are also Local Listing Brokers (LLBs)—they don’t just help clients buy HUD homes, they actually list them on behalf of HUD. That means they are already inside the system. They know every form, every deadline, every update, and every nuance. More importantly they know where to find them!

That gives you a major advantage.

We don’t guess how it works. We know. And because we work the HUD pipeline every day, we stay on top of new listings as they come out—usually weekly—and we can alert you the moment something that may be right for you hits the market.

Special Financing Options That Make It Even Better

HUD also offers powerful programs to make these homes even more accessible to first-time buyers:

  • $100 Down Program – You can purchase a HUD home with just $100 down using an FHA loan (available in many states).
  • Good Neighbor Next Door – Teachers, law enforcement, firefighters, and EMTs may qualify for a 50% discount on eligible homes.
  • FHA 203(k) Loan – Finance both the purchase and repairs in one loan, perfect for homes that need a little TLC.

These programs can be amazing—but only if your broker knows how to access them and handle the paperwork properly.

Don’t Let a Paperwork Mistake Cost You a Home

Buying your first home is a big deal. You shouldn’t have to worry about whether your agent is “winging it” with something as technical as a HUD transaction. We’ve seen buyers lose their dream home simply because their agent didn’t know how to submit a bid or missed a critical step.

Don’t take that chance.

House Karma agents are trained, certified, and experienced. They’ve also completed HUD’s Housing Counselor training and passed their exam (very rare for agents) and they work with these programs every single day. They are, quite simply, the best people to help you buy a HUD home.

  • Hint: make sure to ask your agent how many HUD homes they have sold and if they have also competed the HUD Housing Counselor course and can show you there exam pass.

Final Word: Get the Help You Deserve

HUD homes can be a golden opportunity, great homes, good neighborhoods, special financing, and a chance to buy before investors. But success comes down to who’s guiding you.

With House Karma, you’ll work with experts who know the HUD system inside and out and can help you maximize your opportunity without missing a step.

Ready to explore HUD homes?
Let a House Karma expert help you find, qualify for, and win your first home.