HUD Owner Occupant Period Now 15 Days on FHA Insured Homes

I am a HUD listing broker and I just received a memo from one of my HUD asset managers. HUD is making a huge change in its bidding policy, which will greatly affect investors wanting to bid on HUD homes. My blog is primarily about investing in long-term rental properties and investors need to pay attention. I detail how investors can bid on and purchase HUD homes in my investors guide to purchasing HUD homes.

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Owner occupancy period has been reduced on HUD Homes to 15 days

Right now on FHA insured HUD homes there is a 30 day owner occupant bid period. The first 10 days are a sealed bid period for owner occupants only, and then the next 20 days are a daily bid period for owner occupants. Investors cannot bid during this time frame, and I have had many investors complain to me about this policy. There is now going to be a 15 day owner occupant bid period on FHA insured HUD homes. The the initial 10 day sealed bid period will stay the same, but now there will only be a 5 day daily bid period for owner occupied buyers only after that initial 10 day bid period. Investors can bid on HUD homes on the 16th day and will not have to wait until the 30th day.   This change goes into effect on December 1st 2013. FHA uninsured homes bid periods will not change. They will still have a 5 day owner occupant only bid period and investors will be able to bid on the 6th day.

What does HUD count as days on the market?

I want to remind everyone that HUD counts days on the market as days the home is available to be bid on at HUDHOMESTORE.COM. If a HUD home goes under contract the days counted for the bid periods stops. Example: home is on the market for 12 days when HUD accepts a bid. The contract falls apart 20 days later and the MLS shows the home as being on the market for 32 days. However HUD only counts the home as being on the market for 12 days because it was under contract the rest of the time.

HUD has also changed the way bids are reviewed

In the past HUD reviewed all bids that were received in the initial bid period at the same time. This has not changed as HUD will still review initial bid period bids on the first business day after that bid period. However, after the initial bid period HUD will change the way they review bids. After initial bid periods, bids were reviewed every business day (daily bid period). HUD reviewes bids in order of the day they were received if the bid was received on a weekend or holiday. For example; a bid comes in on Friday and another bid comes in on Saturday. If the property was in the daily bid period, HUD would review the bid received on Friday before they looked at the Saturday bid.

Now HUD will review all of those bids at the same time. In the daily bid period it does not matter if your bid comes in on Friday, Saturday or Sunday; they will all be reviewed at the same time on the next business day.


It will now be much easier for investor to bid on HUD homes as they will not have wait 30 days for FHA insured homes. This is a simplified explanation of the HUD bid periods. Government agencies and non-profits can also bid in the same bid period as HUD homes and technically there is a lottery period on HUD homes for government agencies and non profits on uninsured homes before they are available to owner occupants. For more information on the HUD system please check out my HUD articles below. For more information on my investing strategy check out my complete guide to investing in long-term rental properties.

For more information on how to buy the best rentals which will make the most money, check out my book: Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely. The book is 374 pages long, comes in paperback or as an eBook and is an Amazon best seller.

The Investors Guide to Purchasing HUD homes

The Owner Occupants Guide to Purchasing HUD homes


  1. Gus August 15, 2016
    • Mark Ferguson August 15, 2016

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