How to Buy a HUD Home in Georgia, Step by Step

Alvaro Moreira -
By Alvaro Moreira
4 min read

How to Buy a HUD Home in Georgia, Step by Step

Last updated: Oct 2026. By Alvaro Moreira, NMLS #148581. Moreira Team | MortgageRight. MortgageRight NMLS #2239; Atlanta Branch NMLS #1285851.

A foreclosed home does not always go to auction. When a home with an FHA-insured loan is foreclosed on, the property can end up owned by the U.S. Department of Housing and Urban Development, and HUD sells it to the public. For a Georgia buyer, that can mean a well-priced home, an FHA loan, and in some cases a down payment of just $100.

The process works a little differently from a typical sale, so here is how it goes, step by step.

What is a HUD home?

A HUD home is a one- to four-unit residential property that HUD acquired through foreclosure on an FHA-insured mortgage. HUD sells these homes to recover the insurance claim it paid. They are listed on the official HUD Home Store at hudhomestore.gov, and you can search Georgia by city, county or zip code.

Step 1: Decide what you can afford and get pre-approved

Before you fall for a house, know your number. A pre-approval shows your agent and HUD your financing is in order, and it tells you what to look for in the listings. Our guide to the mortgage pre-approval process explains what to gather, and our Georgia pre-approval page gets you started.

Step 2: Search the HUD Home Store

Search Georgia homes and look at three things on each listing:

  • the financing label (IN, IE or UI), which tells you how the home can be financed
  • the listing period, which tells you who can bid right now
  • whether the $100 Down incentive is available

We explain the labels in HUD homes in Georgia: IN, IE and UI explained.

Step 3: Hire a HUD-registered broker

HUD requires every offer to go through a HUD-registered selling broker or agent. You cannot place a bid yourself. Ask any agent you are considering whether they are registered with HUD to sell its homes, and whether they have helped buyers with HUD purchases before.

Step 4: Know the bidding periods

Do Owner-Occupants Get Priority When Buying a HUD Home?

Yes. HUD gives owner-occupant buyers priority on many HUD-owned homes before investors are allowed to bid.

HUD properties are offered through different listing periods:

Exclusive Listing Period: Eligible owner-occupants, along with certain approved nonprofits and government entities, may have the opportunity to submit offers before investors.

Extended Listing Period: If the property remains available after the applicable priority period, the bidding may open to a broader group of purchasers, including investors.

HUD generally considers an owner-occupant to be a buyer purchasing the property as their primary residence. Additional HUD eligibility requirements apply, including restrictions on buyers who have recently purchased another HUD-owned property as an owner-occupant.

Because listing periods and bid deadlines can vary based on the property’s FHA insurability status and current HUD rules, always check the individual property’s listing on HUD Home Store for the current bid deadline and buyer eligibility requirements.

Step 5: Make your offer

Your broker submits your bid through the HUD Home Store. HUD’s asset manager reviews bids on the bid open date for that property. Because many buyers may bid during the first window, a clean pre-approval and a strong, realistic offer help.

Step 6: Finance with FHA

Most HUD buyers use an FHA loan. HUD’s FHA handbook lists three paths for HUD homes: a standard FHA loan for a home that meets FHA’s property standards as is, an FHA loan with a repair escrow when repairs are no more than $10,000, and a 203(k) renovation loan for homes that need more. Read our Georgia FHA loans page and FHA loan qualification guide for the basics.

Step 7: Ask about $100 down

On eligible homes, HUD’s $100 Down sales incentive allows a minimum down payment of $100 with FHA financing, instead of 3.5%. On a $250,000 purchase, that is $100 rather than $8,750. This is an illustration, not a quote or an offer of credit, and the $100 does not include closing costs, inspections or repairs. See our Georgia HUD Home $100 Down program page for the details.

Step 8: Inspect, appraise and close in Georgia

HUD homes are sold as-is, so schedule a thorough inspection. The lender orders an FHA appraisal, and your closing is handled by a Georgia closing attorney. Learn how that works in our guide to the closing attorney in Georgia.

Questions to ask before you bid

  • Is this home marked IN, IE or UI?
  • Is the $100 Down incentive available on this property?
  • What do I need in cash for closing costs, inspections and prepaids?
  • If it needs repairs, would a repair escrow or a 203(k) loan make sense?
  • How long have I got to close once my bid is accepted?

Talk it through with a Georgia loan officer

Every home and every buyer is different. Share what you are looking at and we will walk through the financing options with you.

Equal Housing Lender

All loans are subject to credit approval. Rates, terms, and program availability are subject to change without notice. This information is for educational purposes only and does not constitute a commitment to lend. Additional restrictions may apply.