What Closing Costs Does HUD Cover?
HUD will cover the following closing costs on a HUD Home transaction, according to HUD.gov:
- Prorated property taxes, HOA fees and utility bills
- Condominium or HOA transfer fee
- Cost to provide condominium documents to the buyer
- Repair escrow inspection fee of $200
- Recording fees and charges for the deed
- Overnight mailing fee for the Closing Disclosure
- State and local transfer taxes
There are additional closing costs HUD may help pay for, up to an amount that is equal to 3% of the purchase price; be sure to talk to your real estate agent about requesting these funds in your contract.
Will HUD Make Repairs?
No matter how your home inspection turns out, you won’t be able to negotiate with HUD to have any repairs completed. You also won’t be able to complete them