Could someone please tell me if HUD will participate in downpayment assistance for an owner occupant to purchase a HUD home. Home says that it will qualify for FHA with plumbing and boiler inspections. My clients have been approved for FHA loan but they need 3%downpayment assistance and $3,000 in closing costs. I know HUD will only cover 5% of the purchase price for closing costs. My question is can some of that 5% be used for downpayment assistance and my client can pay the rest to come up with 3% down. Home is listed at 113,000 .

I have tried calling listing agent and HUD contact but can't get an answer.

Thanks in advance for your input.

Joanne Moore
Woodlan Realtors
Franklin, Ohio

find your listing on this website:http://www.mcbreo.com/st_ohmain.htm
First, check to see if the listing is insured, uninsured, or insured with escrow. Insured means it will qualify for fha financing, uninsured it will not, insured with escrow means fha 203K with repair escrow loan only. Hud will not pay any part of downpayment.
Allowable closing costs, up to 5% of the purchase price are these things only:
http://www.pyramidrealestate.com/docs/Closing_Cost_H_2005-12h.pdf

Thanks Ky. Now my clients say they have the 3% down! Mom is giving funds as gift. So I "think" everything is ok and they don't need to ask for downpayment assistance. I appreciate your reply.