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?

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Comments(3)

  • Ron_Durr9th June, 2005

    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.

  • jam93712th June, 2005

    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."

  • joecrane12th June, 2005

    Did you have title insurance when you bought the property?

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