Purchasing HUD homes requires making available, with your offer documentation, that the purchaser either has the funds or is approved for bank financing. The buyer submits this information with their executed HUD contract package.
When the proof of funds is provided as cash, then the method for purchasing the property needs to be cash. Please do not come back after the offer is accepted and state your buyer now wants to use financing. If you are the buyer, or the agent representing that buyer, the seller may choose to cancel the HUD contract and retain the earnest money due to non-performance under the terms of the accepted contract.
Pre-approvals and the purchase contract should specify the type of loan and the LTV (loan-to-value) the borrower is seeking.