A HUD Real Estate Owned (REO) property, including a Good Neighbor Next Door (GNND) property, may be eligible under the 203(k) program. The property is identified as eligible for 203(k) financing in the sales contract or addendum.
Investor purchases of HUD REO properties are not eligible for 203(k) financing.
For additional information see Handbook 4000.1 II.A.8.a. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh