What are the requirements when a buyer purchases a HUD Real Estate Owned (REO) property as an Owner-Occupant?

An Owner-Occupant Buyer is a buyer who intends to use the Property as their Principal Residence.
A buyer may purchase HUD REO Properties as an Owner-Occupant Buyer if:
  • they certify that they will occupy the Property as their Principal Residence for at least 12 months; and
  • they have not purchased a HUD-owned Property within the past 24 months as an owner occupant.  
The selling broker must not knowingly submit the offer on behalf of a person or Entity that is not an Owner-Occupant Buyer and must discuss the penalties for false certification with the buyer. The buyer and selling broker must sign an Exclusive Listing Period Purchase Addendum for Individual Owner-Occupant Buyers certifying to the above conditions.

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 https://www.hudhomestore.com/ and click “Help” in the gray tool bar.
For policy information see Handbook 4000.1 IV.B.2.d.i. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-03558