How can I finance the purchase of a HUD Home?

HUD Homes can be financed in a variety of ways. Many are eligible for financing with an FHA-insured mortgage. The availability and use of FHA-insured financing is determined by the terms and conditions of the HUD Homes listing. Properties that do not require significant repairs can be purchased with an FHA-insured mortgage. The property listing will indicate if it is eligible for purchase with an FHA-insured mortgage.

HUD's internet site provides additional information on FHA mortgages: 
Find an FHA-approved lender in your area:

You may also wish to contact a HUD-approved housing counseling agency in your area for unbiased counseling on your particular situation.
There are also many local and State government programs that use HUD and/or non-HUD funds to provide grants for the down payment or to help pay closing costs.

Find out what programs are available in your area:

For more information on HUD Home listings and how to search the HUD Homes website (including saving searches and email alerts) please visit and click “Help” on the gray bar in the top right corner of the page. On this page you will find short videos, guides and additional FAQs.

For additional information see Handbook 4000.1 II.A.8.o.:

HQ Policy Determination

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02431