What to Know About HUD Homes Disclosures


Before submitting a bid for a HUD home, selling agents and their buyers should be aware of certain unique factors about purchasing a HUD-owned home. These HUD homes disclosures are important for analyzing the structure of bids and what to expect if the bid is accepted. Understanding these disclosures before deciding to bid on a HUD home should improve expectations and provide for a more successful buying experience.

As-Is Sales: HUD Homes are sold as-is without warranty.

Irregularities in bids: HUD reserves the right to waive any irregularity in any bid, reject any and all offers, and to withdraw a property prior to the bid opening.

Code and Zoning violations: Properties may contain code and/or zoning violations. Code and Zoning status must be determined by the Purchaser.

Property Condition: No guaranties and/or warranties made. No repairs will be performed by HUD after closing. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property.

Closing Cost Assistance: HUD pays closing cost up to 3% of the purchase price, IF inserted on line 5 of the HUD Sales Contract when the electronic bid is submitted. This request will reduce your bid’s net to HUD which may be considered in a competitive bidding situation.

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