Arrowhead Escrow Blog

You may have heard the expression "The home is sold as is". A lot of our clients when they hear this ask "What does As Is mean?" As is, simply put means you are buying the home the way it is. Not like traditional homes that are repaired by the seller prior to the buyer purchasing the home, all HUD Homes are sold As Is!

Basically, what you saw when you toured the home with your realtor is what you are buying. Bad carpets, holes in the wall, missing appliances, that’s the way you are getting it. HUD will not pay for repairs or termite damage.

Sound like a raw deal? Its really not. Most HUD homes are sold pretty cheap, in fact you could be getting the best deal in the Neighborhood. But what else do you get? Well how about closing cost assistance. You can get up to 3% of the purchase price in closing cost assistance from HUD. Please be sure that to ask your agent about this.

What else do you get when you buy a HUD Home? Well you can get into to a HUD home for as low as $100 down. Also HUD pays for 100% of the escrow fee which is not included in your 3% closing cost credit. Look for more on closing cost in later blogs.

You may still be thinking that it is just not worth it to buy a HUD home that needs repairs, however some HUD Homes are sold with a repair escrow clause. We will address the repair escrow clause in our next posting.

-- Arrowhead Escrow