How Do You Bid on a Northern Colorado HUD Home?
Submitting a bid on a HUD foreclosure is a fairly simple process. The market for Fort Collins, Loveland, and Northern Colorado HUD homes is very competitive, so make sure you have your pre-qualification letter and earnest money ready.
Step 1: Get Pre-Qualified First, speak with a lender and obtain a pre-qualification letter stating how much you can borrow. Pre-qualification is required to make an offer on a HUD home. The contract asks you to specify the type of financing you’ll use — options include conventional, FHA, VA, or all-cash at closing. Your lender can help you determine what you can comfortably afford.
HUD homes in areas like Fort Collins, Loveland, Greeley, and Windsor have already been appraised and are typically listed at or near their appraised value. Offering more than the list price often means paying the difference in cash at closing, since loans are based on the lower of the purchase price or appraised value. Cash offers are always welcome.
Step 2: Tour Available Homes Once you’re pre-qualified, you’re ready to view available HUD homes in the Northern Colorado areas you’re interested in. You cannot tour a HUD home or submit a bid without a licensed agent, as these are federal properties.
We would be happy to show you the available Fort Collins, Loveland, and Northern Colorado HUD homes. Contact us — your local Northern Colorado HUD Home Specialists.
When touring, keep in mind that HUD homes are sold as-is. HUD will not make any repairs, so most properties need some sweat equity (paint, carpet, flooring, etc.).
A big advantage of bidding on HUD homes is that owner-occupants get priority during the initial bidding period. You won’t be competing against investors right away unless the home has been on the market for a while.
Step 3: Submitting Your Bid Once we find a HUD home in Fort Collins, Loveland, or elsewhere in Northern Colorado that you like, I’ll need the following information to submit your offer:
- Offer Amount: What price would you like to offer? In many cases, offers 5% below asking can work, but in competitive Fort Collins and Loveland markets, winning bids often come in at or above list price — sometimes $10k–$20k over in hot conditions.
- Financing Type:
- 203b – Most common FHA loan. Down payment as low as 3.5%, and closing costs can often be rolled into the mortgage.
- 203b with Repair Escrow – Common for HUD homes. Up to $5,000 in repairs can be escrowed and financed through the FHA lender to bring the home to FHA standards.
- 203k – For more extensive repairs (over $5,000). Example: $100k home needing $15k in repairs can be financed for $115k.
- Cash, Conventional, VA, or other non-FHA financing.
- Seller Concession: HUD will often contribute up to 3% of the offer price toward your closing costs.
- Backup Offer: Would you like HUD to hold your bid as a backup if another offer is accepted?
- Personal Information: Full legal names, Social Security numbers, and current addresses for all buyers going on the title.
After Submission HUD typically reviews bids after the bidding period ends (often 10 days from listing). If your offer is accepted, we have 2 days to deliver the contract, and you’ll usually receive the accepted contract within 1–2 business days. Closings generally take about 45 days from acceptance.
Looking for HUD homes in Fort Collins, Loveland, Windsor, Greeley, or surrounding Northern Colorado communities? Contact your local Northern Colorado HUD Home Brokers today.
Call us at 303-476-8454 for more information. We’re happy to answer any questions and help you through the process of buying a HUD home in Northern Colorado.