Everyone has definitely heard about the simple way to make money, almost each of us knows from early childhood that if one buys something low and then sells it high, the difference will top up your bank account. When it comes to real estate investment we have to admit, that the same rule works here, but “to buy low” in this case means to invest money in HUD foreclosure.
HUD is the short name for Department of Housing and Urban Development; this Department is a branch of Federal Housing Authority or just FHA. In order to minimize the risks of financial institutions Federal Housing Authority gives guarantees for some of bank loans. Usually FHA guarantees certain range of programs, as an example one can name first time buyer program. It is really widespread nowadays and its main advantage is, that program gives the buyer ability to become an owner of new house just with three percent down payment.