Can buyers make repairs to a HUD Home they are purchasing before loan closing and settlement?

HUD sells Real Estate Owned (REO) Properties “as-is.”  Buyers cannot make repairs to the property before the purchase transaction is completed and settlement has occurred.

The buyer does not have legal title to the property prior to settlement.  If a buyer enters the property to make repairs prior to taking ownership, it would be considered illegal entry, in which case HUD may cancel the sale and forfeit the earnest money deposit.  The buyer may also be required to reimburse HUD for any expenses incurred to restore the home to its original condition.
When necessary to comply with mortgage lender requirements or state, tribal, or local law, a buyer may submit a request to the Asset Manager (AM) for repairs. The buyer must include with its request:
  • documentation reflecting that such repairs are necessary to comply with lender or state or local requirements; and
  • a copy of a home inspection report identifying the property condition at issue.  
HUD will review requests on a case-by-case basis and, at its sole discretion, may make the requested repairs.  HUD may impose some or all of the cost of repairs on the buyer.
For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD HomeStore website at and click “Help” in the gray tool bar.

For policy information see Handbook 4000.1  IV.B.2.j.ii. at

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-02596