Can A HUD Sales Contract Be Amended?


After your HUD sales contract has been approved/ratified by HUD, it is a contract with terms to be honored. In almost all cases, there is no option to have a HUD sales contract amended.

Terms That Can Not Be Amended In A HUD Sales Contract

Lets just get out on the table immediately, what is a deal killer (i.e. NOT amendable on HUD contracts).

  • Sales Price
  • Primary purchaser
  • The amount of earnest money
  • Closing Cost concession
  • Net to HUD
  • Sales agent commission paid by HUD
  • Purchaser’s Social Security Number
  • NAID Number used by Broker
  • Moving from Investor to Owner or Occupant or Owner or Occupant to Investor

What Can Be Amended And How To Proceed

Recognizing that there are some issues that come up that do not break the spirit of the agreement, HUD does allow some items to be amended. First, go to the site of the HUD Asset Manager assigned the property to find the appropriate Amendment form and instructions.

  • Financing type can be amended from FHA to conventional or cash or can be amended from cash or conventional to FHA if the property is eligible. A lender letter or proof of funds will be required to make the change.
  • Additional purchasers can be added but at least one primary purchaser must remain on the contract.
  • Amount of the repair escrow can be amended for a 203B loan with a repair escrow. Supporting documentation must be provided with the amendment. These repairs may not exceed $5500. (actual repair escrow maximum of $5000 with 10% cushion allowance for a total of $5500)
  • Address corrections can be requested – with supporting documentation.
  • Closing Dates can be extended through the extension request process.
    • Broker and purchaser must sign extension request form (found at Asset Manager’s website).
    • An Extension fee is required and must accompany the request.
    • A lender letter or current proof of funds must accompany the request and fee.
    • All three items are to be delivered to the closing agent. The closing agent will accept only if all three documents are received five business days prior to the expiration of the contract term.

Requests Received to Amend HUD Contracts

The bid states the purchaser is the Owner Occupant. This means the home will be the purchaser’s primary residence for a minimum of 12 months and the purchaser has not purchased another HUD home as an owner/occupant in the last 24 months. This status CAN NOT be amended. If the request is needed, HUD will cancel the contract. Even if the lender underwrites the loan for the owner-occupant as an investor loan, the contract will be cancelled.

HUD does not allow contingencies (i.e. inspections, home closings, cashing a big check etc.). A HUD contract is a contract with limited ways that it can be amended.

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