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
Credit Report (up to $20)
Home Warranty (up to $250)
Loan Discount Points
Loan Origination Fee
Prepaid and Escrow Items (for owner occupants only)
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