Buy HUD homes are sometimes the cheapest option available for a common man to own a house. The fact that teachers and police officers could buy HUD homes at 50% off the market value attracts more potential buyers. Before starting off hunting around to buy HUD homes, let us see what actually a HUD home is? HUD homes are those dwellings that have been acquired by the U.S. Department of Housing and Urban Development. When a home owner fails to meet the payments of a HUD insured mortgage, it res.