Can I finance a HUD home to an owner occupant?

[Sandy Uhlmann]

I was wondering if anyone had any experience in financing a HUD home to an owner occupant? I offered to finance a HUD home to a friend/handyman who never thought he could afford a home/be a homeowner. We found a home on the hud homestore and we checked with the realtor to make sure that it was OK to provide financing. My friend bid and hewon the bid. He was so excited he was crying! My realtor called today and now thinks there may be an issue with me financing to him since I/my SDIRA who is lending him the money is not a "conventional lender."

Does anyone have any experience with financing to people who buy HUD homes? I don't want my friend to lose his earnest money because HUD won't let me finance to him.

Any advice would be appreciated.