Who pays buyers commission on HUD?

[Diego Carrillo]

Hi all,

I am in Colorado and looking to purchase a HUD that popped up however my agent notified me that I will have to pay her commissions on top of the price if I win the bid.

I plan on using VA to finance and live in it for 2 years and do the repairs myself.

My plan is to live in it as an owner occupant and rent out rooms while in colorado and rent out property after I get assigned to another base.

[Greg H.]

@Diego Carrillo

Your agent is absolutely incorrect as HUD provides up to 3% to the buyer's agent with a $1000 minimum

The bigger issue you are going to have is twofold. It appears that you have an agent who is not experience with HUD transactions. There are many deadlines to meet and you need an agent with HUD experience

You are also going to have a VERY hard time closing a HUD with a VA loan. The biggest issue will be the need to turn on the utilities for the appraisal along with the inability to do any lender required repairs prior to closing as HUD does not allow this. Check with your lender now to see if they have a workaround