disadvantages of being a cash buyer on HUDs?

[Joey Smajd]

I recently spoke with my local HUD broker about a home that I would like to purchase as an O/O. It is currently listed below 50% ARV in a great neighborhood and I happen to have enough money to pay cash.

The HUD broker told me that if my offer was in cash I would be at a disadvantage because a buyer making an identical offer to mine would via an FHA loan be more attractive to HUD because of all of the added interest they would collect.

I really would like to get the property so I guess my best option is to purchase with an FHA loan and then just pay it off a month later? Anyone else had experience dealing with purchaaing HUD homes? Advice/opinions please...