HUD Allowable

Closing Cost Assistance

 

HUD will pay certain closing costs up to three percent ( 3%) of the purchase price.

Note: Certain closing costs. 

 

Costs paid by HUD not to exceed 3% if requested on line 5 of the 948 HUD Sales Contract

 

Additional Allowable closing costs

•  Appraisal Fee

•  Credit Report (up to $20)

•  Flood Certification

•  Home Inspection

•  Home Warranty (up to $250)

•  Loan Discount Points

•  Loan Origination Fee

•  Prepaid and Escrow Items (for owner occupants only)

•  Recording fees

•  Survey,if required by lender

•  Title Insurance coverage for Lender

•  Title Insurance Coverage for Owner

•  Condo or HOA Transfer Fee,if applicable

•  Cost to provide condominium documents reimbursable expense

•  Proration of Property taxes and any special assessments such as Homeowner's Assoc fees.

•  Recording Fees (for deed only)

•  Settlement or Closing Agent Fee. Buyer Select Closing Agent (BSCA)

 

 

(Note: All the above can be paid if sufficient funds are on line 5)

 

Under the Buyer Select Program closing fees are the Buyer’s expense.

 

• HUD will pay only a portion of the closing fees if the buyer includes

closing costs on Line 5 of the sales contract when the bid is

submitted and there are sufficient funds remaining to allow for the fee

to be paid.

 

• If no closing costs are included in the bid submission to HUD, the

buyer will be required to pay all settlement and closing fees.

 

 

Note:

 

• If it is a standard practice and customary in a state, HUD will pay the

Deed recording fee, but Line 5 monies are used first. If there are no

Line 5 monies, then HUD will pay.

 

• There are additional allowable closing costs that may be paid by HUD

at closing if there are sufficient funds on Line 5 of the sales contract

to cover the expenses. 8