The Federal Housing Administration (FHA) is increasing the exclusive listing period on certain HUD single-family real-estate owned (REO) homes to allow more time for owner occupants, HUD-approved nonprofit organizations, and governmental entities to submit bids for the purchase of these homes before they become eligible for purchase by investors.
Beginning March 1, the exclusive listing period for individuals, families, HUD-approved nonprofit organizations, and governmental entities will increase from the current 15 days to 30 days for new listings of single family homes listed as “insured” or “insured with escrow” on HUD’s REO sale site, HUD HomeStore.
Properties with these designations are eligible for FHA-insured financing under the FHA 203(b) program, meaning that they meet FHA’s minimum property standards and may only require cosmetic repairs or non-structural repairs up to $10,000.
The lengthening of the exclusive listing period is consistent with the Biden-Harris Administration’s goal to make more HUD-owned properties available to owner-occupants and non-profit organizations.
“FHA is actively supporting the Administration’s efforts to increase the supply of affordable housing and provide more opportunities to those who have traditionally faced barriers to homeownership,” says Principal Deputy Assistant Secretary for Housing and the Federal Housing Administration Lopa P. Kolluri, in a release. “By extending the time frame individuals have to bid on an REO property, we are offering families a better chance to purchase a quality HUD-owned home to live in, build equity, and create generational wealth.”
Photo: Phil Hearing