Can the 203(k) program be used to purchase a HUD REO property?

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

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-04619