Single Family Property Disposition

To sell HUD single family Real Estate Owned (REO) properties in a manner that expands homeownership opportunities, strengthens neighborhoods and communities, and ensures a maximum return to the FHA mortgage insurance fund.

Eligibility depends on the sales period and specific program, but generally includes:
Owner-Occupant Buyers
• Individuals purchasing the property as their primary residence
• Must occupy the home for at least 12 months (standard owner-occupant requirement)
• Receive priority during the Exclusive Listing Period
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HUD-Approved Nonprofit Organizations
• Must be recognized by HUD as an approved nonprofit
• May purchase affordable housing, redevelopment, or resale programs
• Often eligible for specific programs (e.g., Dollar Homes, GNND partnerships)
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Local Government Entities
• Cities, counties, municipalities
• Eligible for programs such as Dollar Homes
• Must use properties consistent with program requirements (e.g., affordable housing)
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Public Housing Agencies (PHAs)
• May purchase for housing development or redevelopment purposes
________________________________________ Investors
• Individuals or business entities purchasing for investment purposes
• Eligible only after the owner-occupant priority period expires
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Participants in Special Programs
• Good Neighbor Next Door (GNND) (law enforcement, teachers, firefighters, EMTs)
• Other HUD-authorized revitalization initiatives

HUD Single Family Property Disposition does not involve proposals for federal financial assistance. Instead, HUD evaluates purchase offers submitted for HUD Real Estate Owned (REO) properties in accordance with established sales procedures and program priorities.

Offer selection is generally based on:

Purchaser eligibility category (e.g., owner-occupant priority period vs. investor period)

Net return to HUD (acceptable offer price after consideration of allowable costs and commissions)

Compliance with program requirements, certifications, and occupancy obligations

Timely and complete submission through a HUD-registered broker

During exclusive listing periods, eligible owner-occupants, nonprofits, or governmental entities may receive priority over investors. Once the exclusive period expires, properties may be available to all eligible purchasers.

These criteria relate to property sales evaluation and do not constitute a competitive federal financial assistance selection process.

HUD Single Family REO Disposition Programs do not operate on a fixed application approval cycle. Purchase offers are reviewed on a rolling, transactional basis during the applicable property listing period.

Approval or rejection of an offer typically occurs after the close of the listing period in which the offer was submitted. Timeframes may vary depending on the specific sales program and property, but generally occur within several business days following the offer review period.
HUD Single Family Real Estate Owned (REO) Disposition Programs do not involve applications for federal financial assistance. Instead, interested purchasers submit purchase offers for specific properties in accordance with HUD’s established sales procedures.
Offers must be submitted electronically through a HUD-registered real estate broker within the applicable listing period. HUD reviews submitted offers to verify:
• Purchaser eligibility (e.g., owner-occupant, nonprofit, governmental entity, or investor status)
• Compliance with required certifications and occupancy commitments
• Completeness and timeliness of submission
• Acceptability of the offer based on net return to HUD
During exclusive listing periods, priority consideration is given to eligible owner-occupants and certain nonprofit or governmental entities. If no acceptable offer is received during the priority period, the property may become available to other eligible purchasers.