In order to determine which type of HUD home is right for you, you need to consider more than just if the home is a good value. This is because there are two types of HUD homes: insured and uninsured. Insured homes are better for owner occupants and uninsured HUD homes are better for investors.
These two types of HUD properties differ based on the condition they are being sold in. Uninsured homes need more repairs than insured HUD homes. They also differ on the order in which owner occupants and investors can bid and purchase them. For these reasons it’s important to choose the right type of HUD home to buy.