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Content provided by the Catalog of Federal Domestic Assistance
14.311 Single Family Property Disposition




National Housing Act, as amended, 12 U.S.C 1710, Sections 203(b), 203(k), 204, 24 CFR 200.
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To sell the inventory of HUD-acquired properties in a manner that expands home ownership opportunities, strengthens neighborhoods and communities, and ensures a maximum return to the FHA mortgage insurance fund.


Sale, Exchange, or Donation of Property and Goods.
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The Single Family Property Disposition Program is the marketing and sale of one to four-family properties acquired by HUD after foreclosure of an FHA-insured mortgage. Some properties are sold to any interested buyer on a competitive basis, others are sold to local governments and nonprofit organizations, at a discount, to further local affordable homeownership programs. Under the local government/nonprofit initiatives, HUD provides discounts of up to 30 percent off the list price to local government agencies and nonprofit organizations that buy HUD homes located in revitalization areas. Homes located outside of revitalization areas are sold at 10 percent discount. Revitalization areas are geographical areas designated by HUD in consultation with local governments and interested nonprofit organizations which are either very low income areas, or have a high concentration of eligible HUD homes, or have a low home ownership rate. The local government/nonprofit purchaser enters a binding agreement that the housing assets will be used in conjunction with a home ownership plan with the primary purpose of expanding home ownership, and to meet specific home ownership performance goals, in the revitalization area in which the homes are situated. The home ownership plan must include rehabilitation standards that meet or exceed HUD's standards for housing quality. The purchaser also agrees that each home will be rehabilitated in accordance with those standards prior to sale to eligible purchasers. Most HUD home sales are to members of the general public who may be eligible to obtain low down payment FHA insured financing to purchase their new home. FHA also has programs to enable new home owners to obtain FHA-insured financing to repair and/or rehabilitate a HUD home. Under the Section 203(b) program, HUD insures the mortgage up to a maximum mortgage amount and borrowers generally will pay a low down payment. The homes may be new or existing one to four family homes in urban and rural areas. The homes also must meet HUD's minimum property standards. Under the 203(b) repair with escrow financing, an escrow account for up to $5,000 in repairs to bring the home up to minimum property standards is established with the lender making the FHA-insured loan. The costs of repairs are included in the loan amount and are repaid by the borrower as part of the housing payment. This financing is only available with FHA-insured loans. Section 203(k) loans enable a home buyer to purchase and rehabilitate a HUD home (in excess of $5,000 in costs) up to a maximum allowable mortgage amount with one loan.


Applicant Eligibility:   Local Governments and Nonprofit Organizations: HUD contractors in the specific area should be contacted regarding eligibility requirements. Contact HUD at the number shown below for a listing of nationwide HUD contractors. FHA Insured Financing: Generally, anyone who has a satisfactory credit rating; enough cash to close the loan; sufficient, steady income to make the monthly payments without difficulty; and who will live in the home can be approved for an FHA insured mortgage. Income is only one of several factors that apply in the lending process. Interested buyers should contact their lender for more information.

Beneficiary Eligibility:   Local governments, public nonprofit institution/organizations, potential homeowners.

Credentials/Documentation:   Nonprofit Organizations must have IRS 501(c)(3) status.

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Pre-application Coordination:   None. This program is excluded from coverage under E.O. 12372, Intergovernmental Review of Federal Programs (or consultation with State and local governments regarding program design).

Application Procedure:   HUD homes are managed and marketed by private contractors in different geographical areas. Contact HUD at the number shown below for a listing of HUD contractors nationwide. The contractors list all HUD homes for sale on their individual Internet websites, which can be reached through Bids for a particular property can be submitted online. Purchasers should contact their lenders to obtain FHA loans. A list of HUD approved mortgage lenders is located at our website,

Award Procedure:   Depending on market conditions, Government agencies and Nonprofit Organizations sales may be on a direct basis to the entity upon acceptance of their sales contract, or may be on a competitive basis in which the winning bid is the one resulting in the highest net to HUD. Public sales are handled on a competitive basis.

Deadlines:   Bids must be submitted by the closing date indicated in the listings.

Range of Approval/Disapproval Time:   Varies.

Appeals:   None.

Renewals:   Not applicable.


Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   Not applicable.


Reports:   Nonprofit organizations purchasing homes at a 30 percent discount must submit an annual report, by February 1st, to the Director of the appropriate Single Family Homeownership Center(s), identifying their program accomplishments (see

Audits:   None.

Records:   Nonprofit organizations purchasing homes at a discount must retain information about the acquisition, rehabilitation and resale of discounted properties. This includes copies of HUD-1 Settlement Statements for the resale and other documents (see


Account Identification:   86-4070-0-1-371; 86-4072-0-1-371; 86-4077-0-1-371; 86-4587-0-1-371.

Obligations:   (Sales) FY 01 $4,295,271,388; FY 02 est $3,428,838,000; and FY 03 est $2,600,063,000.

Range and Average of Financial Assistance:  
No Data Available.

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Over 65,000 homes were sold in fiscal year 2001.


HUD Regulations at 24 CFR Part 291. Program information is available on HUD's website at


Regional or Local Office:  
None. Contact the appropriate HUD Homeownership Center (see or HUD Field Office listed in Appendix IV of the Catalog.

Headquarters Office:  
Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: Phone: (800) 225-5342.

Web Site Address:


Not applicable.


Not applicable.

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