HUD home sale are a little different than other types of sales, especially when the buyer is using FHA financing. FHA as-is appraisals are no longer already done, on HUD owned homes, just prior to listing the home for sale. So if the buyer is using FHA financing, you would simply request a new FHA appraisal, and the buyer would be responsible for anything over that amount as additional cash. FHA will allow a lender held escrow repairs, on discovered MPR items, up to $10,000. plus a 10% overage totaling $11,000 Max. If using FHA financing, HUD owned condos don’t have to be on the FHA approved condo list to qualify for FHA financing. Drained pools don’t have to be filled and running, when using FHA financing, either. These are just a few examples of some financing differences. There are many other changes as well so please review the links below and consult with your company’s underwriters for your specific lending policies.