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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.





• 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


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