Arrowhead Escrow Blog

This is a popular question from both buyers of HUD homes and the lenders who are making purchase loans on HUD homes. Unlike regular home purchases there are only certain items that the seller (HUD) will pay for on HUD Homes.

To get your credit, your realtor must include on Line 5 of the purchase contract the percentage you want to be credited. You can request a maximum of 3% of your bid price. The closing cost credit is a "use it or lose it" deal. If you don't request it you can't change your mind later. So put some thought into it.

For your benefit here is a list what HUD will pay for on your purchase of a HUD home:

1. Owners Title Policy
2. Lenders Title Policy
3. Transfer Tax
4. Tax Service up to $81.00 max
5. Credit Report up to $20.00 max
6. Loan Origination up to a maximum of 1% of the loan amount
7. Buy Down Fee up to 3% of the loan amount max (you will need a letter explanation from the lender explaining the reason for the buy down and HUD will have to approve it!)
8. Appraisal fee up to $400 max
9. Underwriting fee up to $700 max
10. One year homeowners insurance policy or up to 2 months impounds for insurance
11. Up to 6 months of impounded property taxes
12. Pre paid interest on the new mortgage

PLEASE NOTE...THE BUYER DOES NOT PAY AN ESCROW FEE!!!

Please feel free to print this list or bookmark this blog posting to give to your lender.

-- Arrowhead Escrow