Purchasing a home isn't for only those who have tons of money. Program upon program exists to help everyone achieve the dream of home ownership. The HUD program is the perfect program to help out those who are having a hard time coming up with the resources necessary to buy a home.
HUD homes have a terrible reputation as homes that need a lot of work. While part of this is true, it's not such a terrible thing to have a house that's a fixer-upper. Homes fall under the HUD umbrella when they go into foreclosure through an FHA loan. It certainly doesn't mean that the home is in serious disrepair.
It is always a good idea to have the home thoroughly checked by an inspector to make sure there is no serious structural damage. You want to make sure the home is at least inhabitable. However, minor fixes are not a big deal, especially if this is a starter home. At least there is an opportunity to do what you want with the home.
HUD homes are usually cheaper than other homes because the cost is only for the recovery of the loss on the foreclosure claim. HUD is the property owner and payment goes straight to HUD. The company also helps with loans and assistance with costs for a new family to take control of the property.
HUD homes are not the stigmatized homes of before. They are simply cheaper homes due to the inability of the previous owners to make payments on the FHA loans. Getting a HUD home means extra research before buying the home and sometimes means extra work going into the home, but it might also mean a great home which just wasn't paid for fully. Do not disregard HUD homes when search for your next home. Give them a chance; they are not only cheap they could also be fairly structurally sound.