The Federal Housing Administration (FHA) on Thursday announced it is increasing its 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. This expansion is the latest action consistent with the Biden-Harris Administration’s housing supply announcement on September 1, 2021, that it would seek to make more HUD-owned properties available to owner-occupants and non-profit organizations.
Beginning March 1, 2022, this 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.
“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,” said Principal Deputy Assistant Secretary for Housing and the Federal Housing Administration Lopa P. Kolluri. “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.”
This announcement is the latest in a number of actions FHA is taking to meet the objectives outlined in President Biden’s September 1, 2021, announcement to support affordable homeownership. Previously, on December 1, 2021, HUD executed a competitive bid HUD-held vacant loan sale where it provided priority bidding opportunities on 50 percent of the mortgage notes in multi-loan pools to non-profits and units of local government. A record 23 mission-driven non-profit organizations successfully participated in the sale, with 11 non-profit organizations winning pools and acquiring the full 50 percent of the total number of loans offered for sale.