Hud Rehabs
I am currently looking for my first rehab/flip in the chicagoland area and I am considering purchasing a HUD home. I know they accept bids for investors after the period for owner occupants has expired, but I have been approved for a loan as an owner occupant and I will be living in the home as the rehab work is completed. Can any tell me if there is a penalty for selling a HUD home prior to one year if it was purchased as an owner occupant property?
I 
[addsig]
No. My loan is all conventional and I have my own cash for rehab. So the only transaction that I will be doing with HUD/HMbireo will be the purchase.
Have you read the owner occupant certification form which HUD will require you to sign? Your broker is required to sign as well.
Here are two excerpts:
"Warning: Falsifying information on this or any other form of the Department of Housing and Urban
Development is a felony. It is punishable by a fine not to exceed $250,000 and/or a prison sentence of not
more than two years."
"I/We certify that I/we have not purchased a HUD-owned property within the past 24 months as an owner-occupant. This offer is being submitted with the
representation that I/we will occupy the property as my/our primary residence for at least 12
months."
Did you have title insurance when you bought the property?